Rand down with investors wary of risk
THE rand gave up ground to the dollar yesterday, largely reflecting a dip in investors’ appetite for risk, while stocks fell across the board, tracking lower world markets.
At closing the rand was trading at 7.5995 against the dollar, down 0.79 percent.
“We’ve seen stocks come off and we’ve also seen the dollar strengthen across the board against the currencies,” said RMB trader Brigid Taylor. The central bank, finance ministry and trade unions have all warned the rand’s gains of more than 20 percent against the dollar this year could hurt the economy, but the gover nment has stressed it will stick to a free floating exchange rate.
The Johannesburg Top-40 index lost 0.47 percent to 24 338.36 points, while the broader All-Share index slipped 0.48 percent.
The Dow Jones Industrial was down 0.32 percent, while the FTSE 100 index was 0.12 percent lower, shortly after the Johannesburg bourse’s close.
Pick n Pay was the biggest loser, shedding 2.74 percent to R39.81, followed by Sanlam, which slipped 2.48 percent to R21.59. Avusa dropped 7.51 percent to R16.01.