#RandReport: Rand slips on global growth fears

At 1435 GMT, the rand was 0.2% weaker versus the dollar at 13.8575.

Picture: Supplied.

JOHANNESBURG – The rand slipped on Tuesday, as fears about the health of the global economy dampened appetite for riskier emerging-market assets.

At 1435 GMT, the rand was 0.2% weaker versus the dollar at 13.8575.

The International Monetary Fund’s warning of a darkening economic outlook after China’s confirmation of its slowest growth rate in nearly 30 years were among factors weighing on investor sentiment.

“Ongoing uncertainty over the Sino-US trade war and a cooling Chinese economy are likely to push risk-averse investors towards safe-haven currencies,” said Jee-A van der Linde, an economist at NKC African Economics.

“The rand is expected to remain under pressure.”

The rand fell by more than 13% against the dollar in 2018 but is up around 3.5% since the end of last year, helped by a retreat in the dollar in early January.

On the Johannesburg stock market, the Top-40 index was down 0.4% at 47,865 points, while the broader All-share index fell 0.3% to 53,974 points.

South African government bonds bucked the weaker trend, edging higher as the yield on the benchmark 2026 instrument fell 4.5 basis points to 8.855%.

Source: EWN

Search
Sponsored Form