Rand ex­tends losses, re­sources sink JSE

The Star Early Edition - - PRICES - Reuters

THE RAND ex­tended its losses against the dol­lar yes­ter­day as jit­tery in­vestors sold the cur­rency af­ter a rec­om­men­da­tion by the anti-graft watch­dog to re­move the central bank’s man­date of main­tain­ing cur­rency and price sta­bil­ity.

At 5.11pm, the rand traded at R13.09 to the dol­lar, 0.75 per­cent weaker than its New York close on Mon­day.

The unit fell as much as 1.6 per­cent against the dol­lar on Mon­day when Pub­lic Pro­tec­tor Bu­sisiwe Mkhwe­bane, head of the coun­try’s con­sti­tu­tion­ally-sanc­tioned anti-graft watch­dog, said the SA Re­serve Bank should be more con­cerned about cit­i­zens and less about the cur­rency.

S&P Global Rat­ings said South Africa’s rat­ing could be cut deeper into junk ter­ri­tory if the gov­ern­ment med­dles with the central bank’s “crit­i­cal” in­de­pen­dence.

In fixed in­come, the yield for the bench­mark gov­ern­ment bond due in 2026 was down.

Mean­while, stocks weak­ened on the bourse, weighed down by re­source shares that have fallen since the gov­ern­ment raised the min­i­mum thresh­old for black own­er­ship of min­ing com­pa­nies to 30 per­cent from 26 per­cent last Thurs­day.

The bench­mark JSE Top40 in­dex fell 0.91 per­cent to 44 970 points, while the all share in­dex dropped 0.9 per­cent to 51 161 points.

The Cham­ber of Mines, which rep­re­sents min­ing firms, said it would chal­lenge the new rules in court, while rat­ings firm Fitch said the new reg­u­la­tions would de­ter in­vest­ment. Har­mony Gold lost 6.26 per­cent to R20.68 and Im­pala Plat­inum re­treated 6.18 per­cent to R34.15. An­glo Amer­i­can lost 3.11 per­cent to R158.78.

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