Rand drops as dollar rises after Powell’s speech

The rand weakened in early trade on Monday, as the dollar continued to rise after US Federal Reserve Chair Jerome Powell signalled interest rates would be kept higher for longer to bring down soaring inflation.

At 09:24, the rand traded at R16.95 against the dollar, 0.31% weaker than its previous close.

The dollar index, which measures the US currency against six rivals, was slightly up to 109.18.

In the stock market, the Top 40 index was down 2.27%, while the broader all-share dropped 2.1% in early trade.

The government’s benchmark 2030 bond was lower in early deals, with the yield up 2.5 basis points to 10.215%.