South Africa's rand on the ropes as virus fears mount

The rand traded 1.08pc weaker at 17.7200 per dollar, after hitting a high of 17.5800 earlier in the session as it e
23 Mar, 2020
  • The rand traded 1.08pc weaker at 17.7200 per dollar, after hitting a high of 17.5800 earlier in the session as it edged closer to an all-time worst level of 17.9950 in 2015.
  • On the stock market, the JSE's Top-40 index closed down 4.43pc at 34,696 points, while the broader all-share index fell 4.98pc to 38,267 points.

At 1510 GMT the rand traded 1.08pc weaker at 17.7200 per dollar, after hitting a high of 17.5800 earlier in the session as it edged closer to an all-time worst level of 17.9950 in 2015.

Bonds continued to tumble, with the government issue due in 2030 adding 63.5 basis points to 12.305pc. With South Africa reporting a sharp jump in confirmed coronavirus cases on Monday to 402, from less than 50 just over a week ago, sentiment towards the rand and other local assets is set to remain on the ropes.

"The world is highly unpredictable, and we cannot know when foreign selling of (South African) assets will stop, nor how much economic damage we will end up inflicting on ourselves," Anchor Capital Chief Investment Officer Nolan Wapenaar said in a note.

"However, what we do know is that common sense will once again prevail at some point."

President Cyril Ramaphosa has declared a national state of disaster and imposed measures such as travel bans to curb the spread of coronavirus. He is expected to address the nation later on Monday on new measures.

On the stock market, the JSE's Top-40 index closed down 4.43pc at 34,696 points, while the broader all-share index fell 4.98pc to 38,267 points.

A host of firms saw their shares sink by more than 10pc or 15pc as the coronavirus sell-off hit local stocks.

The banking sector led the fallers down 9.89pc.

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