JOHANNESBURG (Reuters) -The South African rand weakened on Monday as global investors weighed how long the United States’ government shutdown will last and its potential impact.
At 1338 GMT the rand, which is often sensitive to shifts in global risk sentiment, traded at 17.2500 against the dollar, a whisker away from its Friday close of 17.2475.
The dollar last traded 0.1% stronger against a basket of currencies.
The U.S.
government has shut down much of its operations, potentially putting thousands of federal jobs at risk, after partisan divisions prevented Congress and the White House from reaching a funding deal.
“While the U.S.
government shutdown occurs every year to varying degrees at this time, this year is expected to be significant given the substantial political divide, which may see further risk aversion and U.S. dollar strength in the short-term,” said Annabel Bishop, chief economist at Investec.
Domestically-focused investors will eye gold and foreign exchange reserves data on Tuesday and manufacturing production figures on Thursday to gauge the health of Africa’s largest economy.
On the Johannesburg Stock Exchange, the Top-40 index was flat.
South Africa’s benchmark 2035 government bond weakened, as the yield rose 6 basis points to 9.24%.
(Reorting by Sfundo Parakozov and Anathi Madubela;Editing by Joe Bavier and Louise Heavens)
