South Africa's rand firms slightly but sentiment stays weak on coronavirus

The rand traded at 14.5800 per dollar, 0.17pc firmer than its previous close. The yield on the benchmark gover
Updated 04 Mar, 2020
  • The rand traded at 14.5800 per dollar, 0.17pc firmer than its previous close.
  • The yield on the benchmark government bond  was down a single basis point to 8.135pc.
  • Global markets have tumbled recently on fears the virus could do further damage to China's already-weakened economy.

At 0640 GMT, the rand traded at 14.5800 per dollar, 0.17pc firmer than its previous close.

The currency slipped to 14.6570 per dollar on Monday, its weakest since Dec. 12, with the selloff largely driven by investors dumping emerging market assets.

Nedbank analysts wrote in a note the risk-off scenario was "likely to continue until the coronavirus is brought under control."

Global markets have tumbled recently on fears the virus could do further damage to China's already-weakened economy, an engine of global growth.

The rand is the most fragile among its emerging market peers as investors are also cautious about South Africa's poor economic outlook and possible downgrade to junk by Moody's.

Finance Minister Tito Mboweni gives his budget speech on Feb. 26, with Moody's - the last of the top three agencies to still rate the country at an investment level - set to review its credit rating a week later.

In fixed income, the yield on the benchmark government bond  was down a single basis point to 8.135pc.

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