1 Minute Read by Reuters Staff Reuters, JOHANNESBURG, June 28 – The rand of South Africa fell early Monday as the government tightened COVID-19 regulations in response to the rapidity and scale of new coronavirus illnesses. The rand was trading at 14.1800 against the dollar at 0623 GMT, down 0.37 percent from its previous close. President Cyril Ramaphosa issued harsher COVID-19 restrictions for 14 days, claiming that current containment measures were insufficient in the face of a “third wave” of infections in the country, which is the worst-affected on the African continent in terms of registered cases and deaths. “While necessary, this scenario is likely to exacerbate an already ailing economy, and the rand is expected to stay under pressure, with any strength in the local currency likely to be met with additional demand for the US dollar,” Nedbank analysts wrote in a note. Government bonds also fell in value, with the 30-year bond’s yield climbing 4.5 basis points to 9.035 percent. (Olivia Kumwenda-Mtambo contributed reporting, and Toby Chopra edited the piece.) Continue reading
