Market Summary: Rising Interest Rates And Harsher Lockdowns

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Market Summary: Rising Interest Rates And Harsher Lockdowns

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Published Date: 2021-11-25 | Source: INCE|Community | Author: Currency Assist

Market Summary: Rising Interest Rates And Harsher Lockdowns

The JSE Top40 Index trading 0.8% lower at the 64,001 level on Wednesday, with all stocks lower across the board. Meanwhile Investors are all on edge as the possibility of harsher coronavirus restrictions in Europe and the potential of rising interest rates loom.

In South Africa there are concerns on an approach of a fourth coronavirus wave, with the number of daily cases more than doubling in the previous two weeks. Also, there are concerns about the state power provider Eskom remain, with operational issues showing no signs of abating. On the statistics front, South Africa's business mood remained constant in the fourth quarter at 43 points, owing to worries about regular power outages and the consequences of supply chain disruptions on pricing.

The rand weakened even further on Wednesday, trading at a one-year low, as the dollar remained firm on expectations on US interest rate hikes after the nomination of Federal Reserve Chair Jerome Powell for a second term. Powell was chosen by US President Joe Biden on Monday, beating out another nominee seen as more dovish by markets, reaffirming market expectations for US rate hikes next year.

Higher interest rates in affluent nations draw money away from higher yielding but riskier emerging economies like South Africa. Riskier assets have also been roiled in recent sessions, owing to an increase of Covid-19 cases in Europe. The rand was trading at R15.92 per the dollar, R17.83 per the euro, and R21.25 per the pound on Wednesday.


Market Close Rates
15H00 SAST 24.11.2021

BUY

SELL

USD/ZAR

15.8248

15.9344

EUR/ZAR

17.7445

17.8438

ZAR/JPY

7.2189

7.2791

GBP/ZAR

21.1481

21.2425

AUD/ZAR

11.3946

11.4845

ZAR/CAD

12.4332

12.5748

ZAR/CHF

16.8328

17.0799

NZD/ZAR

10.9009

10.9904

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DISCLAIMER: The rates quoted are shown for indicative purposes only.



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