Rand opens weaker as optimism over Covid-19 vaccine wanes

The rand opened weaker on Thursday, as global investors tempered bullish expectations about a Covid-19 vaccine.

The rand is seen as a proxy for emerging market risk and is highly susceptible to swings in global market sentiment.

At 0730 GMT, the rand was down 0.4% against the US currency at R15.69 per dollar.

Government bonds were also weaker, with the yield on the 2030 bond rising 4.5 basis points to 8.875%.

Investors will look to third-quarter unemployment data and September mining figures later on Thursday for clues about the health of Africa’s most industrialised economy, which is forecast to contract by at least 7% this year because of the pandemic.

President Cyril Ramaphosa said in a televised address on Wednesday that the country would open up travel to all countries in an effort to boost the battered tourism and hospitality sectors.

The country has recorded the most coronavirus infections in Africa, with over 740,000 cases to date.