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South African Rand Weakens in Early Trade

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By Reuters Staff

2 Min Read

 

By Reuters Staff

Reuters Staff

2 Min Read

 

2 Min Read

 

 

JOHANNESBURG, June 2 Reuters The South African rand weakened early on Wednesday, pressured by a firstquarter increase in unemployment and concerns over how long easy financing conditions would last globally.

At 0640 GMT the rand was 0.3 weaker at 13.8000 against the dollar, having closed at 13.7650 overnight in New York.

The dollar was up in early trade as a pick up in U.S. manufacturing kept bets alive for a quicker normalisation of U.S. Federal Reserve policy.

Mixed local economic data, together with the fresh concerns about higher lending rates in the United States, kept the rand bulls at bay.

South Africas unemployment rate rose slightly in the first quarter to a record high of 32.6, from 32.5 in the fourth quarter of 2020.

The rands recent performance, having touched a 27month best near 13.70, has brought into view longterm technical hurdles, prompting a degree of caution among investors.

Monthend saw some distinct twoway flow, with exporters flooding the market on the northern hemisphere holiday on Monday. But that all reversed yesterday with strong demand from both locals and offshore, said Warrick Butler, chief trader at Standard Bank.

It is symptomatic of current conditions that despite the strong demand, the rand was unable to break through the 13.80 shortterm resistance level.

Bonds were a touch weaker, with the yield on the 2030 government issue up…

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