Rand slipped on global growth concerns



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At 1435 GMT, rand weakened 0.2% versus the dollar at 13.8575.

Picture: Provided.

JOHANNESBURG – Rand dropped on Tuesday, as concerns about the health of the global economy reduced appetite for riskier emerging market assets.

At 1435 GMT, rand weakened 0.2% versus the dollar at 13.8575.

The International Monetary Fund's warning about the increasingly dark economic outlook after China's confirmation of its slowest growth rate in almost 30 years was a number of factors weighing on investor sentiment.

"The ongoing uncertainty about the Sino-US trade war and the cold Chinese economy are likely to encourage risk-averse investors to safe-haven currencies," said Jee-A van der Linde, an economist at NKC African Economics.

"Rand is expected to remain under pressure."

Rand fell more than 13% against the dollar in 2018 but rose around 3.5% since the end of last year, helped by a pullback in the dollar in early January.

On the Johannesburg stock market, the Top-40 index fell 0.4% at 47,865 points, while the broader All-share index fell 0.3% to 53,974 points.

South African government bonds fought a weaker trend, edging up as yields on the benchmark 2026 instrument fell 4.5 basis points to 8.855%.

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