Rand slips amid global fears of recession

The rand weakened in early trade on Friday as fears of recession spread around the world following decisions by several central banks to raise interest rates to tame inflation.

At 0705 GMT, the rand traded at 16.02 against the dollar, down 0.14% from its previous close.

Rand/dollar exchange rate over 7 days

The dollar index, which measures the currency against six peers, was up 0.52% and trading at 104.42, recouping some of its losses after slipping to a one-week low on the Federal Reserve’s Wednesday rate increase.

Policymakers around the world have taken an aggressive stance towards fighting inflation, with Switzerland and Britain following the US lead in raising rates on Thursday.

On the stock market, the Top-40 index was down 1.65% while the broader all-share index dropped 1.51% in early trade.

JSE All-Share Index over 7 days

The government’s benchmark 2030 bond was slightly up in early deals, with the yield down 4.5 basis points to 10.210%.

Source: moneyweb.co.za