The JSE closed firmer on Wednesday as the rand weakened against the dollar in the late afternoon, creating opportunities for miners and rand hedges to rebound. The local currency had fallen 20c to the dollar in late afternoon trade after US Treasury Secretary Steve Mnuchin confirmed that President Donald Trump intended to lower the business tax rate to 15% from 35% as part of his tax reform plan. The dollar firmed in response, with the rand losing ground after recording gains earlier in the week. Trading was subdued ahead of Freedom Day on Thursday. Regular trading was only expected to resume next Tuesday after Workers’ Day on May 1, as many traders were expecting to take Friday off. Some technical analysts had expressed scepticism about the rand’s revival earlier in the week, saying it was most likely to be short-lived, said Stanlib retail investment director Paul Hansen. "This potentially created an opportunity to buy rand hedges and also invest offshore." Hansen said a high perce...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.