Rand falls again on second wave infection fears

In early trade the rand was 0.69% weaker at R16.89 per dollar.
Image: Waldo Swiegers / Bloomberg

The rand weakened again early on Tuesday following a sharp plunge in the previous session when fears of a second wave of global cornavirus infections triggered a worldwide selloff of riskier assets.

At 0630 GMT the rand was 0.69% weaker at R16.89 per dollar, close to Monday’s one-and-a-half week bottom of R16.94.

The rand opened the week at R16.30, not far off its best level in six months, but then tumbled more than 3% on Monday, the most among emerging market currencies, as the threat of new pandemic-related lockdowns in the UK and other countries in Europe prompted concerns about the global recovery.

Local sentiment was worsened by the Treasury committing to another bailout for ailing state carrier South African Airways. The airline’s business rescue administrators said on Friday another R10.5 billion would be provided to the carrier.

“Unfortunately, what transpired this weekend was a double whammy of serious concerns about the second wave of virus infections hitting the Northern Hemisphere combined with another bout of South Africa shooting itself in the foot again,” said the chief trader at Standard Bank Warrick Butler.

Traders have warned that South Africa’s fiscal woes, with debt threatening to break the 100% of gross domestic product (GDP) mark, pose a serious risk to investment and sentiment.

The currency is however expected to steady in the session if investors book profits on the dollar’s rally to six-week highs.

Bonds were also weaker, with the yield on benchmark 2030 government paper up 13 basis points to 9.44%.

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SEcond wave in SA or elsewhere???

WHy should it affect us? we insulated….and can it get any more worse???

Technical analysts were saying that once the ront broke 16.30 it would appreciate even more. So what happened ?

What a report! More of the same. ZAR under influence. ZAR staggering. ZAR
has CIVID-19. ZAR is a cent. What next?

Anyway, if we thought corona left the building, I have bad news for you.
Prepare for more of the same. I hope that a vaccine is found (China has one and so do Russia) before second wave hits Saffa. Remember, the second wave is going to be worse. USA is not even out of it’s first wave.

Caution and pragmatism needs to be exercised. Remember
– wear your mask – was jou hande and – keep your distance. The road ahead is going to be tough.

Ok, another person who fell for the government and W.H.O mainstream fear mongering !

Reggwat, best you look into the toxic history of vaccines before you offer up your body so quickly …….

None so blind as those who do not wish to see.
This virus is going to be as stubborn to contain as corruption in the ANC.

What second wave …..? And why should it uniquely affect our currency? You may as well use the coming of spring or the full moon to justify the article. Complete nonsense.

End of comments.

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