Rand enters fourth day of losses as virus sparks risk-off trade
The death toll from the coronavirus outbreak has topped 100, with the first death in Beijing recorded on Tuesday
The rand extended losses against the dollar for a fourth day on Tuesday morning with the global risk-off environment persisting as the coronavirus wreaks havoc in China.
Investors have shied away from riskier assets due to the concern about the effect the virus could have on the global economy, with the rand weakening to a six-week low on Monday. The death toll from the outbreak has now reached 106, with the first death in Beijing recorded on Tuesday, Reuters reported.
At 10.49am, the rand had weakened 0.19% to R14.6303/$ after ending the previous session at R14.60. It had weakened 0.16% to R16.1202/€ while it was 0.17% stronger at R19.0357/£. The euro was flat at $1.1018.
“The focus is likely to remain on developments abroad and the rand could once again be subject to some disproportional selling pressure as risk appetite has yet to show signs of recovering,” said Mercato Financial Services analyst Nico Du Plessis.
The R2030 government bond was weaker, with the yield rising two basis points to 9.075%. Bond yields move inversely to bond prices.
Gold was flat at $1, 580.55/oz while platinum lost 0.25% to $987.81. Brent crude was up 0.14% to $58.98 a barrel.