SA rand weakens as stimulus package disappoints

0
412

JOHANNESBURG (Reuters) – South Africa’s rand was on the back foot on Tuesday amid weak emerging market sentiment and with investors unimpressed by an economic stimulus package announced by President Cyril Ramaphosa last week that included no new money.

At 0645 GMT the rand was 0.36 percent weaker at 14.3325 per dollar, having closed in New York at 14.3850.

The ramp-up in trade war tensions continues to rattle investor confidence as the U.S. and China showed no signs of backing down and the escalating trade row is expected to hit global economic growth.

Investors remain skittish on the rand following the announcement of a stimulus programme that will see a reallocation of the budget but does not involve an injection of new cash.

In fixed income, the yield on the benchmark government bond due in 2026 was up 3 basis points to 9.115 percent.

Stocks are due open lower at 0700 GMT, with the JSE securities exchange’s Top-40 futures index down 0.6 percent.

Reporting by Nomvelo Chalumbira; Editing by Joe Brock

SHARE
Previous articleBank of Ghana keeps policy rate unchanged at 17 pct
Next articleSA portfolio inflows plummet in second quarter
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.