By Reuters
The global fears of a second wave of coronavirus infections have dampened demand for emerging currencies and investors shied away from risk forcing the value of South Africa’s rand to dip.
South Africa’s rand weakened early on Tuesday as global fears of a second wave of coronavirus infections dampened demand for emerging currencies and investors shied away from risk.
At 0730 GMT the rand was 0.15% weaker at 18.4500 per dollar compared to a close at 18.4220 overnight in New York.
Investor concerns about new virus infections in China, Germany and South Korea have driven safe-haven demand in low liquidity trade and reduced interest in emerging markets that are banking on a quick restart of the global economy.
Bonds were also weaker, with the yield on the government paper due in 2030 rising 6 basis points to 9.505%.
Among equities, platinum producer Sibanye Stillwater posted a sharp rise in first-quarter core earnings, benefiting from higher metal prices and robust output from its South African and U.S. operations.
Supermarket chain Pick ‘n Pay reported a 0.6% dip in full-year earnings and scrapped its annual dividend to preserve cash, sending its shares almost 9% lower.
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