The rand fell in opposition to the US greenback on Tuesday as information confirmed the home recession deepened within the first quarter of this yr – earlier than the coronavirus pandemic hit the nation and put additional pressure on the economic system.
At 1500 GMT, the rand was 0.65% weaker at R17.37 per greenback.
Statistics South Africa mentioned that first-quarter gross home product contracted 2% from the earlier three months, led by declines in mining and manufacturing.
The financial outlook stays gloomy after a strict coronavirus lockdown imposed in late March piled extra stress on companies and customers.
“Not a lot has modified since Q1, besides that 1000’s of jobs have most certainly been misplaced, quite a few companies have most certainly closed store, whereas the nation continues to wrestle with a extreme well being disaster,” mentioned Jacques Nel of analysis agency NKC African Economics.
Shares this week continued to buck the worldwide pattern with the FTSE/JSE All Share index going up 0.41% to shut at 54,362 factors on Tuesday. The highest 40 firms index closed up 0.51% at 50,175 factors.
Bonds weakened, with the yield on the benchmark authorities problem due in 2030 up 9.5 foundation factors to 9.265%.