Rand weakens as US recession fears weigh

The rand slipped against the dollar in early trade on Thursday, as markets remained pressured by rising concerns of a recession in the United States.

At 0710 GMT, the rand traded at 15.94 against the dollar, 0.2% weaker than its previous close.

The dollar index, which tracks the greenback against six other major currencies, slipped 0.06% to 104.15.

Overnight, Federal Reserve Chair Jerome Powell said in testimony to Congress that the central bank is fully committed to bringing prices under control, even if doing so risks an economic downturn.

ETM Analytics wrote in a research note that the rand continued trading at the mercy of broader dollar moves.

It added that the market would also be digesting the final instalment of the inquiry chaired by senior judge Raymond Zondo, which examined claims of corruption and fraud under Zuma.

Read: Ramaphosa should have spoken out on Zuma-era state capture: Zondo report

On the stock market, the Top-40 index and the broader all-share dropped almost 1% in early trade.

The government’s benchmark 2030 bond rose in early deals, with the yield down 2.5 basis points to 10.110%.

Source: moneyweb.co.za