Rand weaker as Brexit fears spook markets

Johannesburg - The rand retreated 0.64% 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% at 45 008 points while the All-Share index shaved off 0.57% to 51 374 points.

At 09:05 the rand traded 0.71% softer at R14.8600/$, compared with Tuesday's close at R14.7550/$.

The rand has come under renewed pressure as recent data points to sluggish growth the 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 US 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%.