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Dubai — Emerging-market equities halted a four-day slide, joining global financial markets in showing resiliency after recent geopolitical shocks. The rand and Russian ruble led gains in developing-nation currencies amid a rise in crude oil.
The MSCI Emerging Market Index erased a loss of 0.3 percent to finish little changed, while a basket of currencies rose 0.1 percent.
The rand traded 0.22 percent firmer at R13.96/$ by 07:36 from its overnight close of R13.99 in New York.
The rand hovered for the most of Tuesday around R14.15 to the greenback mainly on the back of oil companies buying, “but that is where it hit a brick wall and sporadic selling then saw it move all the way down to 13.96 by the time the US session ended”, said Umkhulu Consulting’s Adam Phillips in his daily note to clients.
The rand was also boosted by the euro’s rise from a low of 1.0350 to the dollar to just above 1.04.
Phillips reckons that while the rand strengthened a good 18 cents on Tuesday, it could easily give back some gains or continue down to R13.85/$.
“A lack of interest could see the rand try a stronger tack today, especially as the euro is above 1.04, but I am sure nearer to 13.90 importers will want to cover, while 14.15 will attract export interest,” said Phillips. — Fin24
Online Reporter