Rand slips against dollar

South Africa‘s rand slipped on Thursday, continuing its weakness against the U.S. dollar as local producer price inflation (PPI) data did little to assuage investor concern amid market volatility.

At 18:36, the rand traded at 17.9800 against the dollar, 0.81% weaker than its previous close.

The country’s year-on-year headline PPI data for August eased to 16.6% compared to 18% in July, but inflation in food products, beverages, and tobacco products edged higher to 11.6%, data from Statistics South Africa showed.

However, analysts at Nedbank said food inflation in South Africa is close to peaking as global prices of grains have continued to fall.

The dollar index, which measures the currency against a basket of major rivals, softened and was last down around 0.73% to 112.2.

The rand, which is highly susceptible to global drivers such as U.S. monetary policy, is highly oversold and is expected to recover some lost ground by year end, Investec analyst Annabel Bishop said in a research note.

Shares on the Johannesburg Stock Exchange fell, mirroring similar moves in global equities as recession fears gripped investors.

Overall on the stock market, the Top-40 index fell 0.86%, while the broader all-share index ended 0.85% lower.

The government’s benchmark 2030 bond fell, with the yield up 18 basis points at 10.990%.