South Africa’s rand weakened in early trade on Monday, as the safe-haven dollar benefited from a bid for safety by wary investors worried about rising interest rates and the risk of a global recession.

At 0626 GMT, the rand traded at 15.8600 against the dollar, down 0.38% from its previous close. The dollar index, which measures the currency versus six rivals, was slightly up at 104.050.

The dollar typically rises in times of uncertainty, as investors prefer dollar-denominated assets over higher-yielding, but riskier assets such as the rand.

On the Johannesburg stock market, investor attention will be on technology investors and market heavyweights Naspers Ltd and Prosus NV, following an announcement that they intend to sell down their stake in Chinese software giant Tencent Holdings Ltd to fund a share repurchase programme.

South African rand slips on global caution; GDP in focus

Shares of Tencent fell 2.5% on the news. Naspers has a majority stake in Prosus, which in turn holds 28.78% in Tencent.

The South-Africa listed company reported a 16% drop in full-year profit on Monday.

The government’s benchmark 2030 bond was slightly lower in early deals, with the yield up 1.5 basis points to 10.275%.