In South Africa Rand weaker as Brexit fears spook markets

At 0705 GMT the rand traded 0.71 percent softer at 14.8600 versus the dollar, compared with Tuesday's close at 14.7550.

  • Published:
The hand of South African Reserve Bank Governor Gill Marcus is seen holding South Africa's new rand banknotes in Pretoria play South African rand notes in a file photo. (REUTERS/Siphiwe Sibeko)
24/7 Live - Subscribe to the Pulse Newsletter!

South Africa's rand retreated 0.64 percent against the dollar on Wednesday, dragged down by worries over the domestic impact and renewed global fears over the impact of Britain's departure from the European Union.

The JSE securities exchange also weaker, with the Top-40 index down 0.74 percent at 45,008 points while the All-Share index shaved off 0.57 percent to 51,374 points.

At 0705 GMT the rand traded 0.71 percent softer at 14.8600 versus the dollar, compared with Tuesday's close at 14.7550.

The rand has come under renewed pressure as recent data points to sluggish growth in Africa's most industrialised economy, leaving it vulnerable to sovereign credit rating downgrades before yearend.

The local currency, like other emerging markets, was also victim on Wednesday to renewed fears over instability in the European Union after Britain voted to exit the grouping last month, triggering risk aversion.

"Morning markets appear to remain cautious ... Brexit risks currently dominate," analysts at Nedbank said in a note, adding that minutes of the most recent U.S Federal Reserve meeting, due out later on Wednesday, would give the market further steer.

South African government bonds tracked the weaker rand, with the yield for the 2026 benchmark edging up 1.5 basis point to 8.84 percent.

Do you ever witness news or have a story that should be featured on Pulse Nigeria?
Submit your stories, pictures and videos to us now via WhatsApp: +2349055172167, Social Media @pulsenigeria247: #PulseEyewitness & DM or Email: eyewitness@pulse.ng. More information here.