Rand weakens on import demand, stocks fall

Johannesburg - The rand fell as much as 1.4% against the dollar on Tuesday, weighed down by a combination of global risk aversion and a surge in domestic corporate import demand following a public holiday on Monday.

Government bonds followed suit, with the yield for the 2026 benchmark climbing 10 basis points to 9.075%.

The rand hit a session low R14.4820/$, the weakest it has been since April 28, and was trading 1.2% weaker at 14.4500 by 13:07.

"From what we've picked up it's got more to do with just corporate demand that's come back into the market," ETM analyst George Glynos said, adding that the rand was also pulling back after strong gains over the last couple of weeks.

"The rand has come quite a long way, its probably due a bit of a retrace but I don't think it's anything to be particularly concerned about," Glynos said.

On the South African bourse, stocks fell to three-week lows, tracking a sell-off in emerging markets.

The benchmark Top-40 index was down 1.7% to 45 698 points while the broader All-Share index slipped 1.6% to 52 106.