The rand opens flat, with negative global data weighing on it
The rand was trading at R16.46 per dollar in early trade, the same level as its previous close. The rand was flat in early trade on Tuesday, with the risk-sensitive currency being weighed down by disappointing global economic statistics.
The rand was trading at R16.46 per dollar at 08:00, the same level as its previous close.
There are no major local economic data releases scheduled for Tuesday, so the rand is expected to follow the lead of foreign investors.
The safe-haven US dollar lingered around a one-week high on global markets as global economic indices fueled recession fears.
On Monday, the rand lost roughly 1.6% against the dollar in risk-off trade.
South African investors will be looking for indications about the economy's second-quarter performance in June retail sales numbers on Wednesday. The June manufacturing and mining data were worse than predicted last week, adding to evidence that the economy was failing to generate traction.
World Markets
Gold was trading at R29K per ounce. Rising signs of a sharp economic slowdown impacted Asian markets and commodities while bolstering sovereign bonds.
An Asia-Pacific equity index fell, pulled down by Chinese tech shares, following news that social media giant Tencent Holdings Ltd. wants to sell all or a portion of its R394 billion investment in food delivery firm Meituan, ostensibly to appease regulators.
The S&P 500 and Nasdaq 100 contracts fell a little, while European prices rose slightly and the dollar index remained solid.
Monday's statistics from the United States showed swiftly decreasing manufacturing and declining homebuilder sentiment, adding to economic concerns following disappointing Chinese figures.
Haven demand helped treasuries maintain their lead and fueled purchases of Australian and New Zealand debt. Oil fell below $89 per barrel on concerns about demand and the possible return of Iranian supplies.
Bets on lowering inflation and less punitive monetary tightening as the global economy slows have helped global shares rebound about 13% from their June lows. The risk to the bounce is that persistent price pressures keep borrowing costs higher for longer, leading to a recession.
