All data is delayed
Loading...
See More

Rand weakens as investors flee risk

Feb 09 2016 10:19

Johannesburg - The rand weakened in early trade on Tuesday, caught in the global sell-off with investors rushing to safe-haven assets as fears of a global economic slowdown weighed.

At 08:46 the rand weakened 0.34% to R16.1950/$, compared to where it closed in New York on Monday.

"Risk currencies have not escaped the rout," said Rand Merchant Bank currency strategist John Cairns. "The rand has largely just followed the pack, although it has continued to sell-off this morning, even as everything else stabilises."'

Growing fears over a global economic slowdown have spiralled into sharp weakness in risk assets, including the rand which prompted investors to also dump financial stocks.

With many Asian markets closed for the Lunar New Year holiday, thin conditions might have amplified trading moves, market participants said. Most markets in the region will re-open from Wednesday, with Chinese markets returning next week.

Government bonds were mostly weak in early trade, with the benchmark paper due in 2026 adding 0.5 basis points at 9.345%.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

rand  |  markets  |  currencies

NEXT ON FIN24X

 
 
 
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote

Loading...