At 08:41 the rand was trading 0.31% softer at R11.3100 to the dollar compared with its Thursday closing level of R11.2750. The currency had climbed to its highest in two-months against the dollar on Thursday.
Yields on government bonds fell, with the 2026 benchmark down 7.5 basis points to 7.275%.
Power utility Eskom has been forced to implement controlled outages for four consecutive days to avoid triggering a total collapse of the national grid as it struggles to meet demand.
On Thursday, cash-strapped Eskom said power outages had reached "Stage 3", which means it has to cut up to 4 000 megawatts from the grid. "Stage 3" is one level before a complete blackout.
"There is so much bad news locally to point to extended weakness in the currency," Standard Bank currency analyst Oliver Alwar wrote in a market note, citing Eskom as "a big problem".
On Thursday data showed that business confidence registered its slowest start for the year in nearly two decades as the economy grapples with global and local headwinds, including the power cuts.
Investors also remained wary ahead of the US non-farm payrolls report for January later in the session.
No comments:
Post a Comment