The rand weakened against the US dollar in early trade on Friday, as concerns about global economic growth weighed on risk sentiment.
At 09:49, the rand traded at R18.64 against the dollar, 0.54% weaker than its previous close.
Hawkish comments from global central banks, including the US Federal Reserve, stoked fears that their aggressive monetary tightening could push economies into a deeper downturn.
The safe-haven dollar was buoyed by the comments and was last trading up 0.62% at 103.2 against a basket of six currencies.
“This morning, the rand has opened weaker at R18.60, aligning with the strength of the dollar, and there is a possibility of further losses towards the R18.75 level in the near future,” said Andre Cilliers, a currency strategist at TreasuryONE.
The risk-sensitive rand, like most emerging market currencies, often takes cues from global drivers such as US monetary policy and the dollar in the absence of local economic data points.
In the stock market, both the Top 40 index and the broader all-share were down nearly 0.3% in early trade.
South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 6 basis points to 10.755%.
