Rand near one-month low to the dollar as virus jitters persist
The threat that the coronavirus outbreak will worsen is hogging the spotlight, with the local currency near a one-month low against the dollar
The rand, which has been the second-worst performing emerging-market currency over the past month, was slightly weaker on Wednesday, with investors still focused on the coronavirus outbreak.
So far this week, the local currency has hit a low of R14.71/$, its weakest in a month, with emerging markets under pressure from the concern that the viral outbreak will worsen, resulting in further human and economic damage.
At 12.15am, the rand had weakened 0.23% to R14.5818/$ and 0.12% to R18.9785/£, while it was flat at R16.0436/€. The euro had fallen 0.18% to $1.1002. The rand has lost 4.12% against the dollar so far in 2020.
The R2030 government bond was little changed at 9.07%.
Local events are in the back seat, though there was news on Tuesday that the Development Bank of SA had agreed to loan cash-strapped SAA R3.5bn to keep the airline aloft.
Key risk events are putting a damper on investor interest, said Rand Merchant Bank analyst Nema Ramkhelawan-Bhana.
“There’s seldom a day that SOEs [state-owned enterprises] aren’t in the news, heightening uncertainty over the outcomes of the budget and Moody’s review,” she said.