Rand steadies as rising US rates weaken EM currency demand
The revised Mining Charter issued by the government on Thursday raised the minimum threshold for black ownership of mining companies, hitting mining stocks and the rand.
JOHANNESBURG - South Africa's rand steadied early on Monday after selling in the previous session as rising interest rates in the United States weakened demand for emerging market currencies.
At 06:37 GMT, the rand traded at R12.7925 per dollar, compared with its New York close of R12.8050 on Friday.
"The strong dollar, combined with continued media headlines related to the Mining Charter, makes us believe the rand is biased for weakness," Rand Merchant Bank analyst Isaah Mhlanga said in a note.
The revised Mining Charter issued by the government on Thursday raised the minimum threshold for black ownership of mining companies to 30% from 26% and gave companies 12 months to meet the target, hitting mining stocks and the rand.
Focus this week on first-quarter current account data due out on Tuesday and May consumer price inflation numbers to be released on Wednesday.
Stocks were set to open higher at 07:00 GMT, with the Johannesburg Stock Exchange securities exchange's Top-40 futures index up 0.51%.
In fixed income, the yield for the benchmark government bond due in 2026 dipped 1 basis point to 8.475%.