South Africa’s rand slips as commodities stutter

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South Africa’s rand slips as commodities stutter

8:19 CAT | 26 Jan 2017

People walk near the reception at the Johannesburg Stock Exchange (JSE) in Sandton, Johannesburg, South Africa December 10, 2015. REUTERS/Siphiwe Sibeko

Reuters (File photo) / People walk near the reception at the Johannesburg Stock Exchange (JSE) in Sandton, Johannesburg, South Africa December 10, 2015.

South Africa’s rand weakened against the dollar on Thursday amid a retreat in commodity prices and as the greenback was buoyed by expectations for higher U.S. inflation and growth.

South African shares, however, edged higher, in line with emerging market peers on renewed risk appetite after the U.S. Dow Jones index broke past 20,000 points.

At 1500 GMT, the rand traded at 13.3400 per dollar, 0.87 percent weaker than its New York close on Wednesday.

“The dollar has rebounded against all the majors and commodities are down. Generally everything is under pressure a little bit against the dollar today,” said Treasury One chief currency dealer Wichard Cilliers.

The dollar index, which measures the greenback against a basket of six other major currencies, was up 0.45 percent at 100.48.

On the stock market, the JSE All-share index was 0.29 percent higher at 53,405 and the benchmark Top-40 index was up by the same margin at 46,497.

Lonmin was among the biggest movers on the bourse, skidding more than 20 percent after the platinum miner reported below-forecast quarterly production.

Government bonds weakened alongside the currency, and the yield for the benchmark due in 2026 rose 1 basis point to 8.76 percent.

Source: Reuters