Subscribe to industry newsletters

Search jobs

Rand weaker as China Covid protests hurt global sentiment

The South African rand weakened on Monday as protests in Chinese cities against the country's strict zero-Covid curbs raised investors' concerns about the growth implications for the world's second-largest economy and hit global market sentiment.
Source: Pexels

At 1521 GMT, the risk-sensitive rand traded at 17.1100 against the US dollar, about 0.23% weaker than its closing level on Friday.

The rand is used by some investors as a proxy for emerging market risk and is highly susceptible to swings in investor confidence.

"Persistence of a harsh zero-Covid policy in China would negatively affect EMs (emerging markets) into 2023," Investec analyst Annabel Bishop said in a research note.

No major South African economic data releases were due on Monday.

Local investors on Tuesday will turn their attention towards third-quarter unemployment data, which could provide some clues on the health of the South African economy.

Shares on the Johannesburg Stock Exchange rose slightly, with the Top-40 index ending 0.36% higher, while the broader all-share index closed up 0.3%.

The South African government's benchmark 2030 bond also slipped, with the yield rising 5 basis points to 10.270%.


Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day.

Go to:
Read more: Investec, JSE

Let's do Biz