RAND SLIPS ON FIRMER DOLLAR

THE RAND weakened yesterday as the safe-haven US dollar climbed to a oneweek high over fears that new coronavirus outbreaks could undermine a global economic recovery.

At 6.25pm, the rand traded at R14.32 to the dollar, about 0.5 percent lower than its previous close.

Fears over the spread of the highly infectious Delta coronavirus variant have dented global sentiment at a time that markets are on edge because of a hawkish tilt from the US Federal Reserve.

South African scientists said at the weekend that the Delta variant seemed to be starting to dominate new infections, after which President Cyril Ramaphosa tightened restrictions for 14 days.

The country, the worst-hit on the African continent in terms of recorded cases and deaths, is in the grip of a third Covid-19 wave that is expected to surpass a severe second wave that peaked in January.

JSE-listed stocks rose after economic data showed disposable income rose 2.3 percent year on year in the first quarter, which, together with low interest rates and subdued inflation, pushed household consumption spending higher.

That had a positive impact on retailers, with Walmart majority-owned Massmart, Famous Brands, Truworths, Mr Price, TFG, Pick n Pay, Woolworths and pharmacy group Clicks up between 3.39 percent and 6.53 percent.

“Household finances will improve marginally during the year as disposable income will be supported by the gradual recovery in economic activity,” Nedbank economists said in a note.

Overall, the JSE broader all share index advanced 1.12 percent to close at 66 548.71 points, while the Top40 index gained 1.13 percent to 60 495.83 points.

In fixed income, the yield on the benchmark 2030 government bond dipped 1 basis point to 8.95 percent. I