UPDATE 1-South Africa's rand slides as dollar rebounds; stocks slip

Fri Feb 17, 2017 4:40pm GMT
 

* Rand slides as dollar rises

* Banks down as anti-trust probe weighs (Adds latest prices, analyst quote)

JOHANNESBURG Feb 17 (Reuters) - South Africa's rand retreated on Friday as the dollar gained, following a rally that had lifted the South African currency to a 17-month high. Stocks followed global markets down.

By 1540 GMT, the rand had weakened 0.46 percent to 13.0800 per dollar after closing at 13.0200 overnight in New York.

The dollar index, a gauge of the U.S. currency against a basket of other major currencies, was up 0.4 percent, bolstered by expectations the Federal Reserve will raise interest rates more than once this year.

The rand is expected to remain in the same range before Finance Minister Pravin Gordhan's budget speech on Wednesday. Gordhan is expected to announce new taxes on income, alcohol and tobacco to plug a 28 billion-rand ($2.15 billion) shortfall in revenue.

Bonds also backtracked, with the yield on the benchmark 2026 issue adding 8 basis points to 8.73 percent.

On the stock market, the benchmark Top-40 index was down 0.9 percent to 45,074 points. The broader All-share index fell 0.7 percent to 52,223 points.

Losses were broad-based, with three-quarters of the bourse's blue-chips closing lower.   Continued...

  • Africa
  • US
  • Europe
  • Asia
UK £ USD =1.2442
Euro USD =1.0736
Rand USD =0.0774