Rand traded at 16.1225 against the Dollar, about 0.3% down from its previous close.

“When global investors become risk-averse, they often sell emerging-market assets first. That’s exactly what happened overnight. The rand weakened, becoming one of the worst-performing emerging-market currencies,” said Wichard Cilliers, Head of Market Risk at TreasuryONE.

The Rand lost ground mainly because the United States (US) Dollar strengthened as investors sought safety.

The Dollar strengthened against a basket of currencies.

Gold and platinum prices fell, weighing on the rand as SA is a major exporter of both metals.

Gold prices fell sharply in a broader market selloff on Thursday, as signs of easing US-China trade tensions added further pressure on the precious metals.

“Equity market turbulence and a retreat in commodity prices added to the USD’s appeal, while reduced expectations of Fed rate cuts ensured that the USD recovered further,” said ETM Analytics.

SA’s benchmark 2035 government bond was weak in early deals, as the yield rose 1.5 basis points to 8.06%.

–Reuters–