Rand steadies against the US dollar as markets pause for breath

The rand steadied against the US dollar early on Tuesday, as markets paused for breath after tumbling in recent sessions following Russia's invasion of Ukraine. Photo: File

The rand steadied against the US dollar early on Tuesday, as markets paused for breath after tumbling in recent sessions following Russia's invasion of Ukraine. Photo: File

Published Mar 1, 2022

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The rand steadied against the US dollar early on Tuesday, as markets paused for breath after tumbling in recent sessions following Russia's invasion of Ukraine.

At 0650 GMT, the rand was largely steady at about 15.3600 against the dollar.

The rand had weakened more than 2 percent on Monday, to hit 15.4933, as the fallout from tougher sanctions imposed by the West on Russia and the deepening crisis rippled across financial markets and hit risk appetite.

A modicum of calm has returned to currency markets since officials from Russia and Ukraine held an initial round of ceasefire talks overnight, four days after Russia invaded its neighbour.

"All eyes remain on the Ukraine and Russian war, which continues to rage on, despite crippling sanctions on Russia," Citadel global director Bianca Botes said in a note.

"The rand remains stable but on the weaker end of the scale, with a cautious approach being the best approach."

Government bonds firmed in early deals, with the yield on the instrument due in 2030 falling 2 basis points to 9.43 percent.

REUTERS