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.

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SOURCE: [Reuters]


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