Rand slips as weak China data overshadows vaccine hope

‘The rand is trading on the back foot as demand for the USD recovered overnight,’ market economists at ETM Analytics said in a note.
Image: Waldo Swiegers / Bloomberg

The rand was weaker in early trade on Thursday, pausing a recent rally to one-month highs as disappointing Chinese consumption data dampened investor hopes of a quick economic recovery from the coronavirus.

At 0730 GMT the rand was 0.47% weaker at R16.67 per dollar from the previous session’s best of R16.50.

Wednesday’s rally, across most emerging market assets, was spurred by progress in finding a vaccine to counter the pandemic by US firm Moderna, whose experimental vaccine showed it was safe and provoked immune responses to the novel coronavirus in all 45 healthy volunteers.

But China’s unexpected drop in retail sales – for a fifth straight month – poured water on the enthusiasm and saw some investors run for cover in safe-haven assets.

“The rand is trading on the back foot as demand for the USD recovered overnight,” market economists at ETM Analytics said in a note.

“Should the market’s spotlight once again shift away from the rising coronavirus caseload and simmering US-Sino tensions, however, the local unit could have a second attempt at the R16.50/$ level.”

Bonds also weakened, with the yield on the benchmark 2030 government issue up 2 basis points to 9.38%

Get full access to 's financial insights and support quality journalism.

Only R63 per month or R630 per year. You can cancel at any time.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: