Market News

JOHANNESBURG, June 24 (Reuters) – The South African rand weakened in early trade on Wednesday, pressured by a firmer dollar and hawkish signals from the U.S. Federal Reserve that dampened appetite for riskier assets.

• At 0715 GMT, the rand traded at 16.60 against the dollar, about 0.3% down from its previous close.
• The dollar index, which measures the U.S. dollar against a basket of currencies, climbed to its strongest in 13 months as investors positioned for possible Federal Reserve increases to U.S. interest rates and sought shelter from a selloff in technology shares.
• “Geopolitical risks are on the back burner for now, with markets reverting to economic fundamentals as drivers for the dollar,” said Andre Cilliers, currency strategist at TreasuryONE.
• Like other risk-sensitive currencies, the rand often takes cues from global drivers.
• On the Johannesburg Stock Exchange, the Top-40 index was up 0.1% in early trade.
• South Africa’s benchmark 2035 government bond was weaker in early deals, with the yield up 2.5 basis points at 8.36%.