Rand at record low as Covid-19 fears mount

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