South African Rand Weaker As Investors Seek Sanctuary In Dollar
South Africa national symbols (Photo: Courtesy: Portfolio Collection)

South Africa’s rand weakened early on Monday as the dollar gained against riskier currencies with investors watching developments in the China-U.S. trade dispute and a slew of domestic and global economic indicators this week.

Concise News reports that at 0610 GMT, the rand traded at 15.1800 per dollar, 0.3 per cent weaker than its close on Friday when the currency fell to a session low of 15.1975, it’s weakest since Sept. 3.

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Risk assets took a hit in U.S. trade on Friday following the news that President Donald Trump’s administration is considering radical new financial pressure tactics on Beijing, including the possibility of delisting Chinese companies from U.S. stock exchanges.

“The pressure on emerging markets is mounting as the U.S. continues to make waves in the global market,” Bianca Botes, Treasury Partner at Peregrine Treasury Solutions, said in a note.

“Washington announced over the weekend that the U.S. was investigating ways to limit its portfolio investment flows to China, although the U.S. Treasury subsequently denied plans to block Chinese listings on U.S. stock exchanges.”

On the data front, British economic growth and U.S. manufacturing indicators are due later on Monday with U.S. employment figures set to be released at the end of the week.

In fixed income, the yield on the benchmark government bond due in 2026 added four basis points to 8.335 per cent reflecting weaker bond prices.

Nigeria Union initiates anti-crime campaign in South Africa

In related news, in a bid to contribute to stemming crime in South Africa, the Nigeria Union South Africa (NUSA) has initiated an anti-crime campaign to reduce the rate of criminal activities in that country.

The union’s National Welfare Officer, Trust Oyewole, said on Monday in Lagos that the campaign which started on Sunday in the Sunnyside area of Pretoria would be carried out in the nine provinces in South Africa.

“Our anti-crime campaign kicked off in Sunnyside, Pretoria on Sunday. This is an ongoing campaign that will be done in all the nine provinces in South Africa.

“We had a fruitful one on one engagement with community members,’’ he said in a statement.

“We realised that communities are not working together to curb crimes, while the criminals are united in perpetrating their criminal activities that affect the whole community.

“Nigerians generally are not criminals but genuine businessmen and professionals who are greatly contributing to the economy.

“The few Nigerians that are committing crime are not doing it in our name. They are criminals and should face the full wrath of the law.’’

Oyewole advised the few Nigerians who are engaging in one criminal activity or the other to desist and turn a new leaf.

He added that the Help Desk of NUSA was willing to help rehabilitate and repatriate willing Nigerians.