Rand softer, stocks lower

THE RAND retreated yesterday as the dollar gained, following a rally that had lifted the local unit to a 17-month high.

At 5pm the rand was bid at R13.0329 to the dollar, 8.43c softer than at the same time on Thursday.

The dollar index, a gauge of the US currency against a basket of other major currencies, was up 0.4 percent, bolstered by expectations the Federal Reserve would raise interest rates more than once this year.

The rand is expected to remain in the same range before Finance Minister Pravin Gordhan’s budget speech on Wednesday. Gordhan is expected to announce new taxes on income, alcohol and tobacco to plug a R28 billion shortfall in revenue.

Bonds also fell, with the yield on the benchmark 2026 issue rising.

Meanwhile, stocks followed global markets down.

The benchmark JSE Top40 index was down 0.9 percent to 45 074.63 points. The broader all share index dropped 0.69 percent to close at 52 223.54 points. – Reuters