Rand falls in early trade, focus on Mining Charter

The rand retreated early on Thursday as the dollar firmed after the latest US Federal Reserve interest rate increase, while domestic investors awaited details of amendments to the Mining Charter.

The rand was 0.35% weaker at 14.18 per dollar by 0702 GMT, having closed in New York at 14.13.

The dollar index against a basket of six major currencies edged up by 0.4% to 94.574.

Minister of Mineral Resources Gwede Mantashe will brief journalists on amendments to the long-awaited Mining Charter on Thursday.

The Mining Charter – introduced to provide redress for the exclusion of black people in the mining sector under apartheid – could yet be subject to legal challenges if mining companies are unhappy with its contents after publication.

The rand is expected to trade at 14.05 to 14.35 to the dollar on Thursday, NKC African Economics wrote in a note.

Investors were also awaiting the release of August’s producer prices inflation data at 0930 GMT.

In fixed income, the yield on the benchmark government bond due in 2026 fell 2 basis points to 9.05%.

On the stock market, the Top 40 Index was down 0.74% while the broader All Share fell 0.62% in early trade.