Rand weakens on Wednesday

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Rand weakens on Wednesday
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[CURRENCY] At 11:30, the rand traded at R19.16 against the dollar, after investors warned that the outlook for Africa’s most industrialised economy remained bleak despite marginal economic growth in the first quarter. Moneyweb Currency

The rand weakened in early trade on Wednesday after investors warned that the outlook for Africa’s most industrialised economy remained bleak despite marginal economic growth in the first quarter. At 08:58, the rand traded at R19.28 against the dollar. The dollar was last trading at 104.150, around 0.067% stronger, against a basket of global currencies. The rand strengthened slightly on Monday after facing some headwinds and tepid investor sentiment, which pushed the unit as low as R19.

“There are some notable positives to reference, but rand gains are nevertheless running out of steam,” said Rand Merchant Bank analysts in a research note. The country managed a 0.4% growth in gross domestic product for the first quarter and dodged a recession. Nonetheless, investor outlook remains bleak as the country’s worst rolling blackouts on record show no signs of abating.

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