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Johannesburg - The rand was softer in early trade on Monday on concerns that former president Nelson Mandela health’s had turned critical late on Sunday.
At 21:40 on Sunday, the Presidency issued a statement that the condition of the first president of post-apartheid SA‚ who is still in hospital in Pretoria after being admitted on June 8‚ had become critical.
“The Mandela news is a sentiment factor‚ while on the fundamental side‚ we are seeing continuing foreign selling of our bonds as US Treasury yields continue to ratchet higher‚” a local trader said.
At 09:49 on Monday, the local unit was bid down 0.66% at R10.26/$ from R10.2390 at 08:00, R10.2110 at Friday's close and Thursday’s close of R10.2181.
The local currency was bid at R13.4360/€ from its previous close of R13.3885 and was at R15.7598/£ from R15.7099 at its previous close.
The euro was bid at $1.3093 from $1.3103 at Friday’s close and $1.3233 at Thursday’s close.
In its morning report on Monday‚ Absa Capital said the rand did manage to stop weakening on Friday.
“We believe the local unit remains vulnerable to extended selling pressure‚ mainly because we think that emerging markets are likely to be susceptible to continued broad-based dollar strength as well as potential redemption risk into quarter end.
“Domestic risks‚ such as lingering labour tensions‚ tight electricity supply conditions and the possibility of another credit rating downgrade have by no means disappeared‚ even though they have been placed on the back burner due to the aforementioned heightened global concerns‚” the bank said.
At 21:40 on Sunday, the Presidency issued a statement that the condition of the first president of post-apartheid SA‚ who is still in hospital in Pretoria after being admitted on June 8‚ had become critical.
“The Mandela news is a sentiment factor‚ while on the fundamental side‚ we are seeing continuing foreign selling of our bonds as US Treasury yields continue to ratchet higher‚” a local trader said.
At 09:49 on Monday, the local unit was bid down 0.66% at R10.26/$ from R10.2390 at 08:00, R10.2110 at Friday's close and Thursday’s close of R10.2181.
The local currency was bid at R13.4360/€ from its previous close of R13.3885 and was at R15.7598/£ from R15.7099 at its previous close.
The euro was bid at $1.3093 from $1.3103 at Friday’s close and $1.3233 at Thursday’s close.
In its morning report on Monday‚ Absa Capital said the rand did manage to stop weakening on Friday.
“We believe the local unit remains vulnerable to extended selling pressure‚ mainly because we think that emerging markets are likely to be susceptible to continued broad-based dollar strength as well as potential redemption risk into quarter end.
“Domestic risks‚ such as lingering labour tensions‚ tight electricity supply conditions and the possibility of another credit rating downgrade have by no means disappeared‚ even though they have been placed on the back burner due to the aforementioned heightened global concerns‚” the bank said.
