South Africa's rand dips in line with Asian currencies - CNBC Africa

South Africa's rand dips in line with Asian currencies

Southern Africa

by Reuters 0

South Africa's rand dips in line with Asian currencies. Photo: Wikipedia

South Africa's rand weakened against the dollar in line with a decline in Asian currencies against a strengthening greenback on Thursday.

At 0627 GMT, the rand traded at 14.6500 versus the dollar, 0.85 percent weaker than Wednesday's New York close.

China's yuan eased against the dollar on Thursday, after the central bank fixed a softer than expected midpoint while the greenback posted its biggest one-day gain in more than a month.

The rand climbed more than 1.0 percent to 14.5520 per dollar on Wednesday, the firmest it has been since Dec. 9 last year, according to Thomson Reuters data.

NKC African Economics said in a morning note that the rand's expected range for Thursday was 14.52 to 14.75.

"Further gains will be difficult given the heightened political risks environment," NKC said.

The rand still remains vulnerable to political tensions amid continuing calls for President Jacob Zuma to step down after a court ruling found that he breached the constitution when he failed to pay back state money used to renovate his home.

Government bonds were barely changed, with the yield for the benchmark instrument due in 2026 up half a basis point to 8.995 percent.

South African stocks looked set for a negative start with the Top-40 futures index down 0.11 percent.

 

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