20°C / 22°C
  • Fri
  • 19°C
  • 9°C
  • Sat
  • 13°C
  • 4°C
  • Sun
  • 14°C
  • 3°C
  • Mon
  • 17°C
  • 5°C
  • Tue
  • 17°C
  • 6°C
  • Fri
  • 15°C
  • 11°C
  • Sat
  • 15°C
  • 11°C
  • Sun
  • 18°C
  • 9°C
  • Mon
  • 16°C
  • 11°C
  • Tue
  • 15°C
  • 10°C
  • Fri
  • 21°C
  • 10°C
  • Sat
  • 14°C
  • 6°C
  • Sun
  • 16°C
  • 5°C
  • Mon
  • 18°C
  • 6°C
  • Tue
  • 20°C
  • 8°C
  • Fri
  • 21°C
  • 8°C
  • Sat
  • 15°C
  • 1°C
  • Sun
  • 16°C
  • -1°C
  • Mon
  • 18°C
  • 2°C
  • Tue
  • 17°C
  • 4°C
  • Fri
  • 26°C
  • 19°C
  • Sat
  • 23°C
  • 13°C
  • Sun
  • 19°C
  • 13°C
  • Mon
  • 23°C
  • 12°C
  • Tue
  • 19°C
  • 13°C
  • Fri
  • 16°C
  • 11°C
  • Sat
  • 14°C
  • 10°C
  • Sun
  • 19°C
  • 9°C
  • Mon
  • 18°C
  • 10°C
  • Tue
  • 13°C
  • 8°C
  • Fri
  • 12°C
  • 8°C
  • Sat
  • 12°C
  • 7°C
  • Sun
  • 17°C
  • 6°C
  • Mon
  • 13°C
  • 7°C
  • Tue
  • 13°C
  • 7°C
  • Fri
  • 14°C
  • 10°C
  • Sat
  • 14°C
  • 9°C
  • Sun
  • 17°C
  • 8°C
  • Mon
  • 14°C
  • 9°C
  • Tue
  • 14°C
  • 8°C
  • Fri
  • 24°C
  • 9°C
  • Sat
  • 15°C
  • 4°C
  • Sun
  • 17°C
  • 3°C
  • Mon
  • 20°C
  • 4°C
  • Tue
  • 21°C
  • 7°C
  • Fri
  • 22°C
  • 8°C
  • Sat
  • 9°C
  • 0°C
  • Sun
  • 15°C
  • -2°C
  • Mon
  • 18°C
  • 0°C
  • Tue
  • 11°C
  • -2°C
  • Fri
  • 28°C
  • 11°C
  • Sat
  • 28°C
  • 7°C
  • Sun
  • 19°C
  • 5°C
  • Mon
  • 28°C
  • 4°C
  • Tue
  • 28°C
  • 8°C
  • Fri
  • 14°C
  • 10°C
  • Sat
  • 13°C
  • 9°C
  • Sun
  • 17°C
  • 8°C
  • Mon
  • 16°C
  • 8°C
  • Tue
  • 12°C
  • 7°C

Rand falls as deep recession fears weigh

The International Monetary Fund said on Wednesday sub-Saharan Africa’s gross domestic product was on track to shrink this year by 1.6% - its worst performance on record - because of the combined effects of the coronavirus and plummeting oil and commodities prices.

Picture: EWN

JOHANNESBURG - The rand fell early on Thursday, as concerns of a deep economic downturn due to the COVID-19 pandemic rattled already shaky risk appetite.

At 0615 GMT, the rand traded at R18.7050 per dollar, 0.16% weaker than its previous close.

The International Monetary Fund said on Wednesday sub-Saharan Africa’s gross domestic product was on track to shrink this year by 1.6% - its worst performance on record - because of the combined effects of the coronavirus and plummeting oil and commodities prices.

In South Africa, the IMF projects the economy, already in recession, will shrink 5.8%.

That grim outlook added pressure to the rand, which was already reeling after the South African Reserve Bank slashed lending rates to their lowest ever. That weakened its attraction as a “carry trade” currency, which depends on repo rates remaining high.

The rand has dropped around 33% since the beginning of the year.

In fixed income, the yield on the 10-year government bond due in 2030 was up a single basis point at 10.600%.