UPDATE 1-South African rand slips as strong dollar, power cuts weigh

Published: 2022-09-19 tag: africa

The South African rand lost ground on Monday, bruised by a strong dollar and lengthy power cuts by state-owned utility Eskom.

A street money changer counts South African Rands in Harare, Zimbabwe, May 5, 2016. REUTERS/Philimon Bulawayo

JOHANNESBURG, Sept 19 (Reuters) - The South African rand lost ground on Monday, bruised by a strong dollar and lengthy power cuts by state-owned utility Eskom.

At 1602 GMT, the rand traded at 17.7250 against the dollar, 0.64% weaker than its previous close. In the morning the rand had fallen to 17.7850, its lowest level in more than two years.

The dollar was up over 0.2% against a basket of currencies, as investors braced for a large interest rate hike from the U.S. Federal Reserve this week.

"Financial markets have started to factor in more than a 75-basis-point hike in the U.S., which has negatively affected risk sentiment, causing the rand to weaken towards R18.00/USD," Investec economist Annabel Bishop said in a research note.

South African President Cyril Ramaphosa will miss the United Nations General Assembly this week to address a national power crisis at home, his spokesman told local media, as the country continues to experience significant power cuts.

On the stock market, the Top-40 (.JTOPI) index was down 0.08%, while the broader all-share (.JALSH) index ended 0.16% lower.

The government's benchmark 2030 bond was weaker in afternoon trade, with the yield rising 10 basis points to 10.440%.

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