The rand was weaker on Monday afternoon due to a mix of global and domestic catalysts, with the ongoing US-China trade war driving risk-off sentiment in global markets.
The battle between the world’s two largest economies continues to weigh on global markets after negotiations between the pair reached a deadlock earlier this month.
“The trade war uncertainty remains the major macro-theme. The macro-catalyst reflects in emerging-market currencies as a whole, which are mostly weaker,” IG market analyst Shaun Murison said. “The rand’s slight under-performance suggests domestic factors such as the delayed appointment of the cabinet.”
President Cyril Ramaphosa’s announcement on who will be part of his cabinet has been delayed to later this week. Investors are eagerly waiting to see who gets appointed to further his campaign promise of economic reform.
At 2.30pm the rand had weakened 0.33% to R14.4608 to the dollar, was flat at R16.1904 to the euro and 0.11% firmer at R18.3483 to the pound. The euro fell 0.12% to $1,1196.
Gold was flat at $1,285.23 an ounce, while platinum rose 0.11% to $805.33. Brent crude was unchanged at $69.18 a barrel.
The benchmark R186 government bond was firmer, with the yield dropping 4.5 basis points to 8.35%. Bond yields move inversely to bond prices.