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South African rand slips amid global fears of recession

A vendor counts out rand banknotes while working in an African craft market in the Rosebank district of Johannesburg, South Africa, on Wednesday, Aug. 26, 2015. Photographer, Waldo Swiegers, Bloomberg.

A vendor counts out rand banknotes while working in an African craft market in the Rosebank district of Johannesburg, South Africa, on Wednesday, Aug. 26, 2015. Photographer, Waldo Swiegers, Bloomberg.

Published Jun 17, 2022

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South Africa's rand weakened in early trade on Friday as fears of recession spread around the world following decisions by several central banks to raise interest rates to tame inflation.

At 09:05 am, the rand traded at 16.0225 against the dollar, down 0.14% from its previous close.

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The dollar index, which measures the currency against six peers, was up 0.52% and trading at 104.42, recouping some of its losses after slipping to a one-week low on the Federal Reserve's Wednesday rate increase.

Policymakers around the world have taken an aggressive stance towards fighting inflation, with Switzerland and Britain following the U.S. lead in raising rates on Thursday.

On the stock market, the Top-40 index was down 1.65% while the broader all-share index dropped 1.51% in early trade.

The government's benchmark 2030 bond was slightly up in early deals, with the yield down 4.5 basis points to 10.210%.

Reuters

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