Rand weaker as risk appetite muted

The rand slipped early on Tuesday, erasing gains from the previous session as appetite for riskier assets was muted on global markets.

At 06:25 GMT, the rand traded at 14.40 versus the dollar, 0.4% weaker on the day, around the level at which it ended last week.

Uncertainty over Brexit negotiations, Italy’s free-spending budget and fears over Saudi Arabia’s diplomatic isolation were among factors denting appetite for emerging market assets.

South Africa-focused investors will turn their attention to Finance Minister Tito Mboweni’s inaugural budget speech on Wednesday, when he is expected to unveil spending shifts to try to haul the economy out of recession.

The rand started this month on a strong footing but has since fallen back to trade almost 2% weaker against the dollar since the start of the month.

Government bonds were slightly weaker early on Tuesday, with the yield on the benchmark instrument due in 2026 up 2 basis points at 9.16%.