South African rand falls on subdued risk appetite

14 Jan, 2019

* At 0618 GMT, the rand traded at 13.9175 per dollar, 0.6 percent weaker than its New York close on Friday of 13.8350.

* "ZAR traded slightly weaker this morning due to much weaker-than-expected Chinese exports and imports figures for December," analysts at NKC African Economics said in a note.

* Latest data from China showed imports contracted 7.6 percent year-on-year in December when analysts had predicted a 5 percent rise while exports unexpectedly dropped 4.4 percent, confounding expectations for a 3 percent gain.

* The disappointing numbers reinforced fears U.S. tariffs on Chinese goods were starting to take a heavy toll on China's already cooling economy.

* Locally, focus this week will mainly be on the South African Reserve Bank interest rates decision on Thursday. The bank is expected to hold rates at 6.75 percent, according to a Reuters poll.

* In fixed income, the yield on the benchmark government bond due in 2026 added 5 basis points to 8.82 percent in early trade.

Copyright Reuters, 2019

Read Comments