JSE. Picture: REUTERS
JSE. Picture: REUTERS

The rand stabilised at about R13.41/$ on Friday morning after weakening 3% to R13.59/$ on Thursday as it followed the Brazilian real’s plunge.

The Brazilian stock exchange’s Ibovespa index lost 8.8% and the real weakened 7.5% against the dollar on Thursday after O Globo newspaper reported that President Michel Temer had paid hush money to an imprisoned politician whose evidence had impeached his predecessor, Dilma Rousseff.

Although Brazil’s currency dragged the rand with it, the JSE’s all share index did not follow the Ibovespa down, instead gaining 0.36% to end five trading days of losses.

Wall Street rebounded on Thursday from Wednesday’s "Comey memo" crash. The Nasdaq index regained 0.73% after falling 2.57% on Wednesday, and the S&P 500 regained 0.37% after falling 1.82%.

The weaker rand amplified the gain for the JSE-listed Coreshares S&P500-tracking exchange-traded fund (ETF), which rose 1% R31.79 while Deutsche Bank’s MSCI USA index tracker rose 0.74% to R30.

Stock exchanges trading ahead of the JSE’s opening on Friday were mixed. Sydney’s S&P/ASX 200 index was down 0.24% while Hong Kong’s Hang Seng index was up 0.31%.

Please login or register to comment.