Rand struggles in jittery trade

The rand struggled in mid-morning trade on Monday, reflecting an uncertain global environment.

Investors are keeping their eyes on this week’s talks between the UK and EU, as they attempt to find a deal on Brexit. The uncertainty on Brexit has affected some JSE-listed companies, including Intu Properties and Capital & Counties.

The dollar continues to strengthen amid the prospect of more US rate increases. The stronger dollar exerted further pressure on the rand, dampening the hope of some relief for constrained consumers in the form a cut in fuel prices in December.

The rand slipped 0.64% to R14.4250 against the dollar, its weakest in more than a week.

As recently as last Wednesday, the local currency bought a single dollar at R13.89, which represented its best level in more than two months.

At 10:21am, the rand was at 0.64% weaker against the dollar at R14.425, but flat against the euro at R16.2186 and 0.10% weaker against the pound at R18.5315. The euro was 0.70% weaker at $1.2846.

Local bonds were a lot weaker, too, with the yield on the benchmark R186 bond rising to 9.25%, from 9.18% at its last settlement.