20°C / 22°C
  • Sun
  • 17°C
  • 3°C
  • Mon
  • 21°C
  • 4°C
  • Tue
  • 22°C
  • 7°C
  • Wed
  • 22°C
  • 7°C
  • Thu
  • 19°C
  • 5°C
  • Fri
  • 21°C
  • 6°C
  • Sun
  • 16°C
  • 9°C
  • Mon
  • 16°C
  • 12°C
  • Tue
  • 14°C
  • 11°C
  • Wed
  • 16°C
  • 9°C
  • Thu
  • 16°C
  • 9°C
  • Fri
  • 15°C
  • 9°C
  • Sun
  • 19°C
  • 6°C
  • Mon
  • 20°C
  • 7°C
  • Tue
  • 24°C
  • 7°C
  • Wed
  • 23°C
  • 7°C
  • Thu
  • 21°C
  • 7°C
  • Fri
  • 24°C
  • 7°C
  • Sun
  • 21°C
  • 0°C
  • Mon
  • 22°C
  • 4°C
  • Tue
  • 22°C
  • 5°C
  • Wed
  • 23°C
  • 5°C
  • Thu
  • 22°C
  • 4°C
  • Fri
  • 22°C
  • 5°C
  • Sun
  • 22°C
  • 15°C
  • Mon
  • 25°C
  • 15°C
  • Tue
  • 22°C
  • 17°C
  • Wed
  • 20°C
  • 16°C
  • Thu
  • 23°C
  • 16°C
  • Fri
  • 21°C
  • 16°C
  • Sun
  • 20°C
  • 11°C
  • Mon
  • 16°C
  • 12°C
  • Tue
  • 19°C
  • 11°C
  • Wed
  • 18°C
  • 10°C
  • Thu
  • 19°C
  • 10°C
  • Fri
  • 16°C
  • 10°C
  • Sun
  • 16°C
  • 9°C
  • Mon
  • 14°C
  • 9°C
  • Tue
  • 13°C
  • 9°C
  • Wed
  • 15°C
  • 7°C
  • Thu
  • 14°C
  • 5°C
  • Fri
  • 14°C
  • 8°C
  • Sun
  • 16°C
  • 11°C
  • Mon
  • 15°C
  • 10°C
  • Tue
  • 13°C
  • 10°C
  • Wed
  • 16°C
  • 10°C
  • Thu
  • 15°C
  • 8°C
  • Fri
  • 14°C
  • 10°C
  • Sun
  • 20°C
  • 4°C
  • Mon
  • 21°C
  • 6°C
  • Tue
  • 25°C
  • 5°C
  • Wed
  • 24°C
  • 7°C
  • Thu
  • 22°C
  • 7°C
  • Fri
  • 24°C
  • 5°C
  • Sun
  • 17°C
  • -1°C
  • Mon
  • 20°C
  • 3°C
  • Tue
  • 20°C
  • 3°C
  • Wed
  • 20°C
  • 2°C
  • Thu
  • 22°C
  • 5°C
  • Fri
  • 20°C
  • 4°C
  • Sun
  • 16°C
  • 7°C
  • Mon
  • 26°C
  • 5°C
  • Tue
  • 26°C
  • 7°C
  • Wed
  • 21°C
  • 5°C
  • Thu
  • 22°C
  • 7°C
  • Fri
  • 23°C
  • 6°C
  • Sun
  • 21°C
  • 10°C
  • Mon
  • 15°C
  • 10°C
  • Tue
  • 18°C
  • 9°C
  • Wed
  • 17°C
  • 7°C
  • Thu
  • 18°C
  • 9°C
  • Fri
  • 15°C
  • 8°C

#RandReport: Rand, bonds hit hard as dollar rally continues

At 1530 GMT the rand was down 1.1% at R12.4675 per dollar, its weakest since 10 January, after hitting a low of R12.5325 as emerging-market currencies dropped.

Picture: Supplied.

JOHANNESBURG - South Africa’s rand tumbled to its weakest in more than the three months and bonds also fell, as a rally in the dollar and United States (US) Treasuries battered emerging currencies and stocks on Wednesday.

At 1530 GMT the rand was down 1.1% at R12.4675 per dollar, its weakest since 10 January, after hitting a low of R12.5325 as emerging-market currencies dropped.

The Russian rouble was down one percent while the Turkish lira slipped 0.4%.

“The rand has weakened a lot this week and it’s because of a lot of external risks,” said Jameel Ahmad, global head of currency strategy at FXTM. “It’s not a South Africa story,” he said, pointing to rising oil prices and worries over a breakdown in the US.-Iran nuclear deal.

President Donald Trump has threatened to scrap the 2015 agreement under which Iran curbed its nuclear programme in return for sanctions relief, sparking a wave of risk-off sentiment globally.

The dollar hit a four-month high on Wednesday after a rise in benchmark US Treasury yields above three percent, leading investors to wonder whether the dollar was breaking out of a prolonged weak spell.

The yield on the benchmark bond due in 2026 was up 10 basis points to 8.335%, its highest since 14 February.

Stocks were also weaker, with the Top40 blue-chip index down 1.3% at 50,213 points and the wider All-Share index down 1.2% at 56,966 points.

The JSE All-share index, the broadest measure of stock market performance, was down 1.25% at 50,234 points and the broader All-Share index fell 1.2% to 56,987 points.

“Our market is reacting to a weaker close of the US market, that’s why you saw a weaker opening,” said GT247 head of trading Nilan Morar.

Stocks falling the most were resources and financials tracking the currency’s tumble.

Royal Bafokeng Platinum was the biggest decliner on the All-Share, 9% weaker at R22.90, after World No. 1 platinum producer Anglo American Platinum sold most of its stake in Royal Bafokeng Platinum, on Wednesday.

Gold stocks closed 1.74% lower. Gold Fields was down 5.08% at R46.44.

The banking index was down 1.9% on the day.

ABSA fell 2% to R170.95, Nedbank weakened 2.9% to R285, while Standard Bank shed 1.5% to R212.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus