Johannesburg - The rand weakened in early trade on Thursday ahead of
President Jacob Zuma's annual state of the nation address, which
investors hope would tackle domestic economic woes including electricity
shortage.
At 07:04 GMT the rand was trading 0.22% softer at R11.8615/$, compared to its closing level of R11.8350 on Wednesday.
The currency touched a 12-year low of R11.8925 on Wednesday after long-standing economic frailties and more immediate sociopolitical pressures turned sentiment against the unit.
Power utility Eskom on Wednesday implemented load shedding for a 10th straight day after technical problems on its ageing units cut capacity.
Global risk sentiment was rattled on Wednesday, sending emerging currencies lower as a meeting of eurozone finance ministers in Brussels showed little sign of reaching agreement on terms of Greece's bailout.
"With Greek talks not going anywhere, other risk currencies selling off, Eskom's woes and the unedifying spectacle of the local state of the nation address coming up, it's easy to think a decisive break higher is coming," RMB currency analyst John Cairns said in a note.
Government bonds also weakened, with the yield for the 2026 benchmark up 0.5 basis points to 7.625%.
The currency touched a 12-year low of R11.8925 on Wednesday after long-standing economic frailties and more immediate sociopolitical pressures turned sentiment against the unit.
Power utility Eskom on Wednesday implemented load shedding for a 10th straight day after technical problems on its ageing units cut capacity.
Global risk sentiment was rattled on Wednesday, sending emerging currencies lower as a meeting of eurozone finance ministers in Brussels showed little sign of reaching agreement on terms of Greece's bailout.
"With Greek talks not going anywhere, other risk currencies selling off, Eskom's woes and the unedifying spectacle of the local state of the nation address coming up, it's easy to think a decisive break higher is coming," RMB currency analyst John Cairns said in a note.
Government bonds also weakened, with the yield for the 2026 benchmark up 0.5 basis points to 7.625%.
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