UPDATE 1-South African rand slips, bonds firm as dollar on front foot

  • Reuters
  • Forex News
UPDATE 1-South African rand slips, bonds firm as dollar on front foot
Credit: © Reuters.

(Updates to reflect afternoon trade)

JOHANNESBURG, May 4 (Reuters) - The South African rand weakened against a dominant dollar on Tuesday, erasing the previous day's gains as investors awaited upcoming data and policy speeches. 1530 GMT, the rand ZAR=D3 traded at 14.4950 against the dollar, 0.6% weaker than its previous close.

In the absence of major shifts in South Africa, the rand has taken its cue from global sentiment in recent weeks.

Although rand assets offer some of the highest real returns in major emerging markets, Africa's most industrialised economy faces challenges, including a rapid build-up in public debt exacerbated by the COVID-19 pandemic. bonds firmed on Tuesday, with the 2030 issue ZAR2030= yielding 9.15%, down 4 basis points.

On the Johannesburg bourse, shares dropped with the opening of the U.S. market, which saw a technology-led stock sell-off. Johannesburg Stock Exchange's all-share index .JALSH closed down 0.62% at 66,174 points, and the blue-chip index .JTOPI dropped 0.65% to 60,376 points.

The banking .JBANK and industrials .JINDI indices fell 0.64% and 1.18%, respectively. Bourse heavyweight Naspers NPNJn.J lost around 2%.

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