Rand extends losses amid global risk-off sentiment
The rand extended losses for the third day against the dollar on Monday morning with risk appetite subdued as investors assess geopolitical risks.
The US and China have described their latest meeting as “productive” after the two economic superpowers resumed talks late last week, while markets remain uncertain that the two will reach a deal soon.
Tension in the Middle East has escalated after last week’s attack on Saudi oil facilities. The US said at the weekend that it will deploy more troops to the Gulf area.
“With most of the local market being out for the long weekend, we might see the rand trade range-bound until the US market opens up this afternoon with risk-off likely to remain the tone for now,” chief dealer at TreasuryONE Wichard Cilliers said.
At 10.01am, the rand had weakened 0.24% to R14.9379/$ while it had firmed 0.15% to R16.3941/€, and was flat at R18,5600/£. The euro had strengthened 0.41% to $1.0974.
Gold was little changed at $1,517.56/oz, as was platinum at $950.43/oz. Brent crude had lost 0.17% to $64.51 a barrel.