Rand weaker as second wave fears hurt markets

The rand opened weaker on Monday as investors sold riskier currencies on fears of a second wave of the coronavirus in Beijing.

At 0652 GMT, the rand traded at R17.31 versus the dollar, around 1.5% lower than its close on Friday.

Government bonds also dropped, with the yield on the 2030 bond rising 9 basis points to 9.32%.

Some investors use the rand as a proxy for emerging market risk, so it tends to swing considerably at times of global market volatility.

On the forex markets on Monday, the Chinese yuan and emerging market units including the Russian rouble dropped after Beijing recorded dozens of new cases of the novel coronavirus in recent days, all linked to a major wholesale food market.

South Africa’s confirmed coronavirus cases rose over 70 000 on the weekend, the most in Africa. It has recorded 1 480 deaths.