EMERGING MARKETS

THE RAND weakened yesterday as worries over surges in coronavirus infections reactivated investor concerns about the economic impact of the pandemic.

At 5pm, the rand bid at R17.09 to the dollar, 17 cents softer than at the same time on Moday.

Deaths from the coronavirus pandemic in India surpassed 20000 and case numbers increased, with infections in the US also jumping, dampening global enthusiasm over the easing of lockdowns.

Locally, Covid-19 deaths passed the 3000 mark, with infections at more than 200000.

“Despite the recent easing of local lockdown measures, the current levels of activity in markets have yet to suggest any recovery,” analysts at Nedbank said in a note.

“The rand is currently trading in the middle of the short-term technical range, and the objective on the downside remains around the (R)16.7000 level.”

Stocks bucked a global trend of a fall in share prices, with the JSE all share index up 0.72 percent to end the day at 55243.8 points and the Top40 companies’ index closing up 0.83 percent to 50922.32 points.

Bonds were weaker, with the yield on the benchmark 2030 government issue rising 15 basis points to 9.665 percent.

Meanwhile, emerging market currencies in Europe, the Middle East and Africa were pressured by a rise in demand for the dollar yesterday, as investors took a breather from stocks and other riskier investments after several days of gains.

The rand and the Russian rouble were among the biggest percentage losers against the dollar, with the latter sliding to a seven-week low as another spike in global Covid-19 cases spurred fresh concerns about the pandemic’s economic fallout. I Reuters