South Africa’s rand weakened on Wednesday amid mounting fears over the fallout from the coronavirus crisis, while investors awaited consumer price inflation and retail sales data to gauge the health of an already battered domestic economy.
At 0650 GMT, the rand traded at 16.6810 per dollar, 0.61% weaker than its previous close.
South Africa’s confirmed number of COVID-19 cases has risen by 23 to 85, the health ministry said late on Tuesday.
Africa’s most industrialised economy is already in recession and the pandemic is expected to make matters worse by hurting tourist arrivals and commodity exports to major trading partner China.
Statistics South Africa is scheduled to publish February consumer price inflation figures at 0800 GMT and January retail sales numbers at 1100 GMT.
Investors will also watch out for an interest rate decision on Thursday, when South Africa’s central bank is expected to cut interest rates by 50 basis points, more than expected a week ago, following aggressive moves by other major central banks trying to mitigate damage from the pandemic, a Reuters poll forecast.
In fixed income, the yield on the 10-year government bond due in 2030 was up 4 basis points at 10.785%.
