Rand remains under pressure

South Africa‘s rand retreated early on Tuesday, and local bonds fell amid subdued risk appetite.

The rand was 0.49% weaker at 14.29 per dollar at 06:45 GMT, having closed in New York at 14.22.

The currency is expected to trade between 14.20 and 14.40 to the dollar on Tuesday, NKC African Economics wrote in a note.

The rand remained under pressure as new vehicle sales data for September showed a 1.9% decline on Monday, reflecting weak demand in the economy.

Investors are cautious following second-quarter gross domestic product data on September 4 which showed the economy had entered a recession.

In fixed income, the yield on the benchmark government bond due in 2026 rose 4 basis points to 9.08%, reflecting weaker bond prices.

Stocks are due open weaker at 07:00 GMT, with the JSE securities exchange’s Top-40 futures index down 0.80%.