World Markets

South Africa's rand falls as virus fears hit risk appetite

Credit: REUTERS/THOMAS WHITE

South Africa's rand fell to its weakest in more than three weeks on Monday, as fears about the economic fallout from rising COVID-19 cases dented investors' appetite for riskier assets.

JOHANNESBURG, Aug 3 (Reuters) - South Africa's rand fell to its weakest in more than three weeks on Monday, as fears about the economic fallout from rising COVID-19 cases dented investors' appetite for riskier assets.

At 0625 GMT, the rand ZAR=D3 was 0.47% weaker at 17.1400 per dollar, its weakest since July 8.

Signs of a resurgence in global infections in recent days have tamed global demand for assets perceived as risky, putting pressure on the rand, which was already vulnerable because of the frailty of South Africa's economy.

In South Africa, confirmed cases of COVID-19 crossed half a million on Saturday.

"Markets continue to dwell on uncertainty regarding trade tensions, U.S. elections and recovery, as well as rising virus numbers," said Bianca Botes, executive director at Peregrine Treasury Solutions.

Government bonds weakened, and the yield on the benchmark bond due in 2030 ZAR2030= rose 9 basis points to 9.335%.

(Reporting by Olivia Kumwenda-Mtambo; Editing by Kevin Liffey)

((Olivia.Kumwenda@thomsonreuters.com; +27 10 346 1084;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest World Markets Videos

Shanghai Resumes Work in Some Factories Amid Virus

May 13, 2022

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More