The rand weakened to its worst level in three weeks on Wednesday afternoon, breaching R17/$, as concern about a rise in new Covid-19 cases and simmering US-China tension put risk assets under pressure.
At 4.10pm, the rand had weakened 1.49% to R17.0391/$, reaching a three-week low of R17.09 in intraday trade. The currency last traded above R17/$ two weeks ago. It had weakened 1.21% to R19.8948/€ and 1.56% to R21.6879/£. The euro had weakened 0.26% to $1.1670.
FXTM senior research analyst Lukman Otunuga said, “The rand is likely to remain influenced by external drivers in the form of the dollar’s performance, coronavirus developments and general sentiment,” adding that a solid break through R17 could see the rand move towards R17.30/$ in the near term — a level it last reached one month ago.
The yield on the R2030 government bond had risen eight basis points to 9.49%. Bond yields move inversely to prices.
Gold was down 1,32% to $1,874.77/oz and platinum 1.71% to $851.25. Brent crude added 0.14% to $41.82.
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