Early trading sees Rand slipping as dollar remains strong

Early trading sees Rand slipping as dollar remains strong. The rand's early trading value versus the dollar was R17.18.

Due to predictions of increased interest rates in the US, the dollar rose to a multi-year high early on Thursday, which led to a decline in the rand.

The rand was trading at R17.18 against the dollar at 0630 GMT, down 0.26% from its previous close.

Early Asian trading saw the dollar reach a 24-year high versus the yen of 139.69, up around 0.5% from the previous day's closing. At 139.55, it was recently up 0.42%.

On the strength of good regional economic statistics, analysts anticipate that the US Federal Reserve will increase interest rates by 75 basis points at its meeting next month.

In addition to putting pressure on the currencies of developed nations, this is driving investors away from riskier markets like South Africa and compelling them to seek refuge in the US.

From its top of R14.46 versus the dollar at the beginning of April, the local currency has lost over 16% of its value against the dollar in the previous five months.

The decline in commodity prices has also been a major contributor to the downturn.

Early sales on the government's benchmark 2030 bond saw a decline, and the yield increased by 12 basis points to 10.560%.