South Africa's rand hits 7-week low as trade tensions heat up

JOHANNESBURG: South Africa's rand slipped to seven-week lows against the dollar in early trade on Monday, as prospects of a sharp escalation in the U.S.-China trade war turned investors risk-averse.

At 0605 GMT, the rand was 0.71% lower at 14.8950 per dollar, trading at its weakest levels since June 13.

"After cutting through the R14.80/$ support level, there seems so be no end in sight for the ZAR's woes as it continues to weaken with ease," Bianca Botes, a treasury partner at Peregrine Treasury Solutions said in a note.

"The trade war remains the focus point for the time being."

Beijing said on Friday it would retaliate against U.S. President Donald Trump's decision to slap 10% tariffs on the remaining $300 billion of Chinese imports, a move that ended a month-long trade truce.

In fixed income, the yield on the benchmark government bond due in 2026 added 7.5 basis points to 8.445% in early trade.