adminJohannesburg — The rand edged down after briefly making gains against the dollar in early trade on Wednesday as the greenback steadied after mixed US data, adding pressure for the battered currency. US home sales unexpectedly suffered their steepest drop since July 2010 on Tuesday, weighing on dollar sentiment.
Separate data showed the world’s largest economy’s gross domestic product grew in the third quarter.
The greenback has since recovered slightly, with the dollar index, which tracks the greenback against a basket of six rival currencies, making small gains, but was still well below a two-week high of 99.294 set on Thursday last week.
By 09:10 the rand weakened 0.20% to R15.1950/$ compared to 15.1640, where it closed overnight in New York.
“Global headwinds and strong US dollar indirectly weigh on business investment,” analysts at NKC African Economics wrote in a note.
Trade is expected to be subdued for the remainder of the year as most market players are already on holiday, and with no major economic news to provide direction for the rand.
Government bonds were weaker, with the benchmark paper due in 2026 adding 1.5 basis points to 9.46%. as thin volumes exacerbate moves.
On the equities market, stocks opened slightly higher. By 09:07 the JSE’s Top 40 index rose 0.37% at 45 082 points after rising more than 1% in the previous session, bolstered by bargain-hunters.
The broader All-share index added 0.35% to 49 954 points. — Reuters
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