MARKET WRAP: Rand biggest gainer among emerging markets
The JSE had a good day, with the all share rising to 59,335.9 points, with platinum miners leading the way
The rand was the biggest gainer among the emerging-market currencies on Friday after weaker-than-expected US wage growth fueled speculation that the US Federal Reserve is unlikely to raise interest rates any time soon. The fall in the dollar came despite data showing that the world’s largest economy added 263,000 non-farm jobs in April, exceeding the Trading Economics consensus for 189,000. Traders, however, appeared to be more focused on the monthly wage growth of 0.2% compared to the expected 0.3%, implying that inflation will remain under control. Higher inflation in the US usually leads to investors betting on higher interest rates, which draws capital from other markets back to dollar-denominated assets. Friday’s data came after the Fed’s open market committee released a dovish statement on Wednesday. Gains in the rand came in ahead of the Argentinean peso and the Brazilian real, and by 6pm it had improved 1.22% against the dollar to R14.3615. “Any signs of wage growth cooling ...
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