Rand dips on second wave coronavirus fears

The 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 R18.45 per dollar compared to a close at R18.42 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 US 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.