In early trade the rand was at R18.35 to the dollar.
By Tannur Anders, Reuters
7 Nov 2023 09:18
Image: Waldo Swiegers/Bloomberg
The rand was weaker in early trade on Tuesday as global growth concerns rose on weaker Chinese trade data and local worries of meeting fiscal targets.
At 0701 GMT, the rand traded at R18.35 against the dollar.
The dollar last traded around 0.2% stronger against a basket of global currencies.
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The rand’s rally last week on the back of improved risk sentiment was “tempered somewhat by weaker Chinese trade data and a bounce in the Dollar,” Andre Cilliers, currency strategist at TreasuryONE, said.
Ratings agency Fitch on Monday also raised concerns over South Africa’s rolling power cuts, rail freight challenges and ability to meet fiscal targets announced in the mid-term budget last week.
The risk-sensitive rand, like most emerging market currencies, is susceptible to changes in global factors such as US monetary policy.
Federal Reserve Chairman Jerome Powell is due to speak on Wednesday and Thursday, where the focus will be on whether he maintains the more dovish tone struck after last week’s policy meeting.
Locally, South Africa’s net foreign reserves rose to $55.510 billion at the end of October from $54.980 billion in September, central bank data showed on Tuesday.
South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 3 basis points to 10.430%.