Rand dips 1% against the dollar
South Africa's rand dips against the dollar on Thursday morning amid a slowing recovering by emerging assets.
|||Johannesburg - South Africa's rand fell one percent against the dollar in early trade as a post Brexit recovery by emerging assets slowed with economic fundamentals coming back into focus.
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On the bourse, stocks were due to open up higher, with the benchmark Top-40 futures index inching up 0.5 percent.
By 07h15 GMT the rand had slipped 1.2 percent to 14.9600 per dollar, edging back towards the 15.00 technical support mark that, if breached, could trigger further rand selling.
South Africa's statics agency is expected to publish producer inflation data at 09h30 GMT.
The rand saw steady gains in the last two sessions, bringing gains to a total of about 4 percent as investors lapped up risk assets in the wake of Britain's shock decision to exit the European Union.
But with a degree of calm returning to global markets as the initial shock of Brexit eased, some traders said the rand could now struggle to justify further gains.
“We are likely to see some continuation of rand strength on the day and this could push it to at least 14.65. Above 14.88/90 and we could see a profit-taking rally to at least 15.00 if not 15.15 depending on liquidity,” Standard Bank chief trader Warrick Butler said.
Government bonds also backtracked in early trade, with the yield on the benchmark 2026 issue up 4 basis points to 8.79 percent.
REUTERS