Rand weakens as stimulus package disappoints


JOHANNESBURG – South Africa’s rand was on the back foot on Tuesday amid weak emerging market sentiment and with investors unimpressed by an economic stimulus package announced by President Cyril Ramaphosa last week that included no new money.

At 0645 GMT the rand was 0.36 percent weaker at 14.3325 per dollar, having closed in New York at 14.3850.

The ramp-up in trade war tensions continues to rattle investor confidence as the U.S. and China showed no signs of backing down and the escalating trade row is expected to hit global economic growth.

Investors remain skittish on the rand following the announcement of a stimulus programme that will see a reallocation of the budget but does not involve an injection of new cash.

In fixed income, the yield on the benchmark government bond due in 2026 was up 3 basis points to 9.115 percent.

Stocks opened lower at 0700 GMT, with the JSE securities exchange’s Top-40 futures index down 0.6 percent.