Rand affected by risk-off trade following North Korea’s missile launch

The rand was slightly weaker against the dollar as investors’ appetite for safe-haven assets increased after North Korea fired a missile over Japan.

Stock markets around the globe slumped‚ while safe havens such as gold‚ US Treasuries and the yen gained.

The JSE’s all-share index was down by 0.63% and in Europe the CAC 40 was down by 1.48% and the DAX 30 by 1.83%.

US 10-year treasuries were up 2.74% and bid at 2.098%.

The spot price of gold was up 1% to $1‚322.77 and ounce.

Mining stocks on the JSE gained‚ with the mining index up by 5.66%.

Sasfin analysts said the rand was negatively affected by risk-off trade following North Korea’s missile launch over Japan‚ while gold was buoyed by this renewed geopolitical tension.

At 11.33am‚ the rand was at R13.0685 to the dollar from R13.0407‚ at R15.7584 to the euro from R15.6272‚ and at R16.9505 to the pound from R16.8707.

The euro was at $1.2058 from $1.1979.

By: Reitumetse Pitso – BusinessLIVE

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