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JOHANNESBURG – South Africa’s rand was steady in early trade on Wednesday as investors took stock of the fast-spreading coronavirus in China and its potential economic fallout.
* At 0603 GMT, the rand traded at 14.5250 per dollar, 0.12% firmer than its previous close.
* Global financial markets showed some signs of regaining composure after days of heavy selling on fears over the virus.
* “Though concerns have not dissipated, there is a renewed sense of calm this morning,” RMB said in a morning note.
* This comes after the United States confirmed that flights to China are still operational and the outbreak is rumoured to be contained with minimal impact to economic growth, said RMB.
* Investors will look for more direction from the U.S. Federal Reserve’s policy announcement later in the day.
* Government bonds were slightly firmer, with the yield on benchmark 2026 instrument down 2 basis points to 8.065% – Reuters Africa
Bongani Ndlovu