Rand slides as China Covid worries dent sentiment

The rand weakened in early trade on Monday, as the market sentiment was dented by worries about a rise in Covid cases in China and tightening restrictions in some cities of the world’s second-biggest economy.

At 0642 GMT, the rand traded at 17.37 against the dollar, 0.68% weaker than its previous close.

China’s capital Beijing reported two deaths for November 20, with the city’s most populous district urging residents to stay at home on Monday, extending a request from the weekend as the country fights numerous Covid-19 flare-ups.

ETM Analytics said in a research note that persistent power cuts in South Africa and a public sector strike expected on Tuesday were also doing little to boost market sentiment.

This week, investors will focus on an interest rate decision by the South African Reserve Bank (Sarb) on Thursday, a day after the release of October inflation figures.

The government’s benchmark 2030 bond was unchanged in early deals, with the yield at 10.395%.