The rand weakened as emerging market currencies lost ground with further deterioration in the United States and China trade wars. File Image: IOL

JOHANNESBURG - The rand weakened on as emerging market currencies lost ground with further deterioration in the United States and China trade relations subduing demand for risk assets.

At 10:30 GMT the rand was 0.32 percent softer at 15.03 per dollar.

The threat of Washington imposing heavier trade sanctions on Beijing intensified after US President Donald Trump said on Tuesday he would take a tougher stance with China on trade.

China on Wednesday slashed its forecast for 2018/19 soybean imports as farmers reduce their use of the bean in animal feed because of the Sino-US trade conflict, which will threaten Washington’s supplies of the oilseed to China.

The local market awaits the release of retail sales data at 11:00 GMT for July, with the market expecting a 1.3 percent increase year on year from a 0.7 percent rise in June.

Government bonds were weaker, with the yield on the benchmark paper due in 2026 rising 3 basis points to 9.180 percent.

- REUTERS