JOHANNESBURG: South Africa's rand traded at its weakest in more than three weeks against the dollar on Tuesday, as political tensions between Russia and Ukraine dented appetite for riskier emerging market assets.
Yields on longer dated government bonds rose after demand for debt at the higher end of the curve came in much lower at the latest weekly auction, compared with previous sales.
The yield for on the 2026 benchmark jumped 12 basis points to 8.115 percent, its highest in nearly a week, while the instrument maturing next year edged up 1 basis point to 6.63 percent.
The rand touched a session low of 10.7510, the softest it has been since Aug. 8, and was down 0.6 percent on the day at 10.7425 by 1552 GMT.
"There appears to be a general risk-off sentiment when looking across the EMEA space at present," Tradition Analytics said in a market note.
"Russia sanction risks are still the main driver of sentiment."
Comments
Comments are closed for this article.