South Africa's rand flat as COVID-19 infections climb

Credit: REUTERS/THOMAS WHITE

JOHANNESBURG, July 17 (Reuters) - South Africa's rand was unchanged early on Friday as investors reassessed the impact of coronavirus, with infections locally and worldwide continuing to climb.

At 0715 GMT the rand ZAR=D3 had not moved against the dollar, still trading at its overnight closing level of 16.7400 per dollar.

The rand rallied most of last week and early this week, reaching one-month highs. But momentum has since stalled as coronavirus infections rose around the world, especially in the United States, and local cases breached 200,000.

Risk demand was also weakened by data showing China consumer demand slackened and by renewed tensions between Washington and Beijing.

President Donald Trump's administration is reported to be considering banning travel to the United States by all members of the Chinese Communist Party.

"The South African currency surrendered gains as risk appetite ebbed in the wake of poor data out of China, dwarfing optimism surrounding promising vaccine trial results," said analysts at NKC African Economics.

Bonds were weaker, with the yield on the 2030 government issue ZAR2030= up 7 basis points to 9.42%.

(Reporting by Mfuneko Toyana, editing by Larry King)

((mfuneko.toyana@thomsonreuters.com; +27117753153; Reuters Messaging: mfuneko.toyana.thomsonreuters.com@reuters.net))

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

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