Rand on track for worst week in four months
The rand was weaker against major global currencies on Friday morning, on track for its worst weekly performance against the dollar in since October.
At 9.55am the rand was 0.44% weaker at R14.1882/$, 0.29% lower at R16.0018/€ and 0.49% softer at R18.1694/£. The euro was down 0.14% at $1.1278.
The bid on the benchmark R186 government 10-year note was at 8.95% from 8.935%.
The local currency has lost 7.01% against the dollar so far in February, and is the worst-performing emerging market currency. It has fallen 4.24% so far this week.
Local and international risks are mounting, with markets digesting Thursday’s disappointing US retail sales numbers, which could signal a recession in that country in 2019, analysts said.
Domestic issues also continue to weigh on the local currency, with trade in local risk assets expected to be cautious ahead of next week’s budget policy statement.
On Thursday, President Cyril Ramaphosa had moved to placate unions over job losses at Eskom, also saying that the utility would continue to be state-owned.
Eskom’s mountain of debt is a key risk to SA’s sovereign credit rating, with Moody’s warning on Monday that vested interests could derail plans to get the power utility’s house in order.
Source: businesslive.co.za
