Rand extends losses against strong dollar

The rand extended its losses against the US dollar early on Wednesday, as the greenback hovered near a one-month high due to lowered expectations for a March rate cut.

Rand versus dollar over three-months 

The rand traded at 19.02 against the dollar early on Wednesday morning, about 0.3% weaker than its previous close, after losing more than 1% against the dollar the previous day.

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The dollar was last up about 0.14% against a basket of global currencies.

The dollar has surged this week due to hawkish comments by European Central Bank and Federal Reserve officials which suggested the Fed might wait longer than previously expected to cut rates.

Statistics South Africa will release retail sales figures for November at 1100 GMT. Economists polled by Reuters have predicted a year-on-year decrease of about 1.1%.

On the stock market, the Top 40 index was down 1.72% while the broader all-share was down 1.56% in early trade.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 2.5 basis points to 9.835%.

Source: moneyweb.co.za