20°C / 22°C
  • Tue
  • 24°C
  • 9°C
  • Wed
  • 28°C
  • 11°C
  • Thu
  • 32°C
  • 15°C
  • Fri
  • 30°C
  • 16°C
  • Sat
  • 29°C
  • 15°C
  • Sun
  • 31°C
  • 16°C
  • Tue
  • 25°C
  • 15°C
  • Wed
  • 21°C
  • 15°C
  • Thu
  • 21°C
  • 14°C
  • Fri
  • 23°C
  • 14°C
  • Sat
  • 23°C
  • 16°C
  • Sun
  • 28°C
  • 16°C
  • Tue
  • 26°C
  • 12°C
  • Wed
  • 29°C
  • 12°C
  • Thu
  • 33°C
  • 18°C
  • Fri
  • 30°C
  • 17°C
  • Sat
  • 32°C
  • 16°C
  • Sun
  • 33°C
  • 19°C
  • Tue
  • 25°C
  • 10°C
  • Wed
  • 31°C
  • 12°C
  • Thu
  • 33°C
  • 17°C
  • Fri
  • 32°C
  • 17°C
  • Sat
  • 29°C
  • 18°C
  • Sun
  • 33°C
  • 16°C
  • Tue
  • 24°C
  • 17°C
  • Wed
  • 26°C
  • 18°C
  • Thu
  • 25°C
  • 21°C
  • Fri
  • 25°C
  • 20°C
  • Sat
  • 27°C
  • 22°C
  • Sun
  • 26°C
  • 22°C
  • Tue
  • 23°C
  • 16°C
  • Wed
  • 23°C
  • 17°C
  • Thu
  • 20°C
  • 16°C
  • Fri
  • 21°C
  • 15°C
  • Sat
  • 22°C
  • 18°C
  • Sun
  • 23°C
  • 18°C
  • Tue
  • 29°C
  • 15°C
  • Wed
  • 23°C
  • 13°C
  • Thu
  • 23°C
  • 10°C
  • Fri
  • 26°C
  • 10°C
  • Sat
  • 30°C
  • 12°C
  • Sun
  • 34°C
  • 15°C
  • Tue
  • 22°C
  • 16°C
  • Wed
  • 20°C
  • 15°C
  • Thu
  • 19°C
  • 14°C
  • Fri
  • 21°C
  • 13°C
  • Sat
  • 23°C
  • 15°C
  • Sun
  • 28°C
  • 16°C
  • Tue
  • 27°C
  • 14°C
  • Wed
  • 32°C
  • 14°C
  • Thu
  • 36°C
  • 17°C
  • Fri
  • 32°C
  • 18°C
  • Sat
  • 32°C
  • 20°C
  • Sun
  • 36°C
  • 18°C
  • Tue
  • 30°C
  • 12°C
  • Wed
  • 35°C
  • 16°C
  • Thu
  • 35°C
  • 19°C
  • Fri
  • 35°C
  • 16°C
  • Sat
  • 27°C
  • 17°C
  • Sun
  • 34°C
  • 15°C
  • Tue
  • 23°C
  • 15°C
  • Wed
  • 27°C
  • 12°C
  • Thu
  • 29°C
  • 14°C
  • Fri
  • 28°C
  • 17°C
  • Sat
  • 30°C
  • 18°C
  • Sun
  • 29°C
  • 18°C
  • Tue
  • 26°C
  • 15°C
  • Wed
  • 23°C
  • 15°C
  • Thu
  • 19°C
  • 15°C
  • Fri
  • 21°C
  • 14°C
  • Sat
  • 22°C
  • 17°C
  • Sun
  • 24°C
  • 17°C

Rand weakens on risk aversion

The rand remains under pressure as the market awaits the Federal Reserve’s interest rate decision during its 18-19 December meeting, as the central bank is widely expected to raise interest rates.

Picture: EWN

JOHANNESBURG - The rand weakened against the dollar in early trade on Thursday as fears of a fresh flare-up in tensions between the United States and China, and concerns about global growth weighed on investor appetite for riskier assets.

At 0651 GMT, the rand traded at R13.9300 per dollar, 0.58% weaker than its New York close of R13.8500 on Wednesday.

The currency is expected to trade in a range of R13.8000 to R14.0500 to the dollar on Thursday, NKC African Economics said in a note.

The daughter of Chinese tech giant Huawei’s founder has been arrested in Canada and is facing extradition to the United States, dealing a blow to hopes of any easing of Sino-US trade tensions and rocking global stock markets.

"The reignited fear of trade tensions between the US and China is causing quite a bit of outflow from emerging markets as risk aversion is once again the investor’s modus operandi," Peregrine Treasury Solutions said in a note.

The rand remains under pressure as the market awaits the Federal Reserve’s interest rate decision during its 18-19 December meeting, as the central bank is widely expected to raise interest rates.

"The rand trading on the back foot as risk sells off. This morning the currency broke out of the R13.60 to R13.90 technical range, the current levels suggestive of further weakness," Nedbank said in a note.

In fixed income, the yield on the benchmark government bond due in 2026 was up 5.5 basis points at 9.030%.

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