Dollar strength weakens South African rand and stocks.


The U.S. dollar rose early Monday, weakening South Africa’s rand and markets. The rand fell 0.16% to 18.2200 per dollar at 0720 GMT.

The dollar index, which tracks the U.S. currency against six major rivals, climbed 0.07% to 102.37, near its one-month low of 102.00 on Friday.

“This morning, the dollar is a little firmer and that will prevent the rand from making back any more ground,” ETM Analytics economists wrote in a research note.

However, the rand performed well in June, reversing May’s losses.

Local investors will examine May inflation this week for economic indicators.

The Top-40 (.JTOPI) and all-share (.JALSH) indexes lost about 1% in early trading.

South Africa’s 2030 government bond yielded 10.775% in early sales.



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