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Rand falls as Sino-US friction dents risk appetite
In line with its emerging market peers.
by Olivia Kumwenda-Mtambo, ReutersThe rand fell early on Wednesday in line with weakness in other emerging market currencies, as increasing Sino-US friction over China’s proposed security law for Hong Kong dented risk appetite.
At 0645 GMT, the rand traded at 17.49 per U.S. dollar, 0.45% weaker than its previous close.
“Emerging markets are trading marginally on the back foot as tensions between China and the US remain elevated,” Nedbank analysts said in a client note.
“Headlines suggest the implementation of sanctions by the US and the inevitable countermeasures that would follow.”
US President Donald Trump on Tuesday said his administration was working on a strong response to China’s planned national security law for Hong Kong, which he said would be announced before the end of the week.
In fixed income, the yield on South Africa’s 10-year government bond was up 0.5 basis point to 9.05%.