In the early hours of Monday trading, both the rand and stocks in South Africa experienced a decline, largely influenced by the strengthening of the US dollar.
By 07:20 GMT, the rand was trading at 18.22 against the dollar, marking a 0.16% depreciation compared to its previous close.
The dollar index, which assesses the value of the US currency against six major counterparts, registered a modest increase of approximately 0.07% to reach 102.37. This level remained close to the one-month low of 102.00 recorded on Friday.
According to economists at ETM Analytics, the firmer position of the dollar in the morning prevented the rand from recovering further. They emphasized in a research note that, despite this setback, the rand showcased an impressive performance in June, successfully reversing the losses incurred in May.
This week, local investors will closely observe the May inflation figures to gain insights into the overall state of the economy.
In the stock market, both the Top 40 index and the broader all-share index experienced a decline of around 1% during early trading.
Early trading activities also witnessed the weakening of South Africa’s benchmark 2030 government bond, with a 3.5 basis point increase in yield, reaching 10.775%.
Source: Moneyweb
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