Picture: REUTERS
Picture: REUTERS

The rand reached a record low of R18.07/$ on Wednesday morning, according to data from Infront, as fears mount about the effect of the Covid-19 outbreak.

The rand weakened along with its emerging-market peers on the day as investors worried that the virus posed a threat to the prospects of global economic growth. The rand has been the worst performing among its emerging-market peers over the past five days, according to Bloomberg data.

At 10.24am, the rand had weakened 0.94% to R18.0071/$, after breaking through R18/$ for the first time on Monday. It had weakened 0.36% to R22.2253/£ but firmed 0.42% to R19.59/€. The euro was flat at $1.0938. 

Gold was up 1.04% to $1,593.11/oz while platinum added 0.69% to $716.05/oz. Brent crude dropped 4.01% to $24.88 a barrel. 

The R2030 government bond was weaker with the yield rising three basis points to 11.03%. Bond yields move inversely to their prices. 

“Looking ahead, I suspect the poor liquidity conditions will persist and continue to adversely affect price action,” said Sasfin fixed-income trader Alvin Chawasema.

mjoo@businesslive.co.za

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.