Malawi orders troops to prepare withdrawal from eastern Congo
South African rand slips against stronger dollar
10:14 CAT | 28 Jun 2023
File photo: Reuters
The South African rand weakened in early trade on Wednesday, giving up some gains from the previous session, as the U.S. dollar edged higher.
At 0714 GMT, the rand traded at 18.5700 against the dollar ZAR=D3, 0.26% weaker than its previous close.
The dollar =USD last traded at 102.600 against a basket of global currencies, up 0.088%.
The rand strengthened at the start of the week as analysts speculated the weekend’s aborted mutiny in Russia may mean President Vladimir Putin could skip a BRICS summit, where South Africa would in theory be obliged to arrest him.
The BRICS group of emerging economies — Brazil, Russia, India, China and South Africa — is due to hold the summit in Johannesburg in August.
“This morning, the rand has given up some of that recovery but still shows the potential to recover further,” ETM Analytics said in a note.
Like other emerging market currencies, the risk-sensitive rand is susceptible to moves in global drivers, such as the dollar, in the absence of local catalysts.
South Africa’s benchmark 2030 government bond ZAR2030= was weaker in early deals, with the yield up 1.5 basis points to 10.535%.
Source: Reuters
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