South Africa's rand falls by over 8 percent as Brexit stuns markets

By Polycarp Kazaresam

South Africa’s rand fell by more than 8 percent against the dollar following Britain’s decision to leave the European Union. The country is on track to its biggest one-day percentage fall since 2008.

At 0640 GMT, the rand traded at 15.3400 versus the dollar. The rand is 6.53 percent weaker from its New York close on Thursday and is at its weakest level in three weeks.

Previously, the unit had fallen to more than 8 percent to 15.6800 per dollar.

Government bonds also weakened. The yield for the benchmark instrument due in 2026 adding 24 basis points to 9.12, after rising by up to 28.5 basis points earlier.

"Global risk appetite is being obliterated in the wake of the largest risk off event in recent times," Nedbank Capital said. "Markets are firmly in the grip of 'risk off', and caution is advised."

Stocks were set to open lower at 0700 GMT, with the JSE securities exchange's Top-40 futures index down almost 5 percent.

African Business Review’s June issue is now live.

Stay connected: follow @AfricaBizReview and @WedaeliABR on Twitter.

African Business Review is also on Facebook. 

SOURCE: [Reuters]


Featured Articles

SAP creates new EMEA region and announces new President

SAP has announced it has appointed a new President for a newly-created EMEA region, aiming to make the most of the opportunities of cloud and AI technology

How SAP is facilitating continuous business transformation

Technology giant SAP has expanded its portfolio with the acquisition of LeanIX, a leader in enterprise architecture management (EAM) software

Siemens and Microsoft: Driving cross-industry AI adoption

To help businesses achieve increased productivity, Siemens and Microsoft are deepening their partnership by showcasing the benefits of generative AI

Sustainability must become central to corporate strategy


The endless benefits of putting your people first

Leadership & Strategy

Working from anywhere: SAP uncovers secret life of employees

Human Capital