JOHANNESBURG, July 26 (Reuters) - South Africa's rand
recovered from early losses on Monday, with concerns over rising
COVID-19 infections setting a cautious tone in global markets
ahead of the U.S. Federal Reserve's meeting this week.
At 1540 GMT, the rand traded at 14.8000 against the
dollar, up 0.35% from its previous close.
The currency fell last week after the South African Reserve
Bank suggested on Thursday that interest rates would stay
The dollar has in recent sessions benefited from safe-haven
buying on fears a surge in infections of the fast-spreading
Delta variant could derail the global recovery, pressuring
riskier assets, such as the rand.
The dollar has also been supported by inflationary concerns
and prospects of an earlier than expected U.S. rate hike.
Market participants are now waiting for the U.S. central
bank's meeting on Tuesday and Wednesday. While no policy change
is expected, investors will look for clues on when the Fed might
start reining in its easy monetary policies.
"A more dovish tone ... would help significantly with market
concerns over global growth on the global rising third wave,"
said Annabel Bishop, chief economist at Investec.
Shares on the Johannesburg Stock Exchange were largely
unchanged from Friday's close.
The benchmark all-share index closed down 0.02% at
68,051 points, while the blue-chip index of top 40 companies
closed up 0.02% to 61,946 points.
Shares in Anglo American Platinum and Impala
Platinum jumped by more than 5% as Impala Platinum
posted a four-fold jump in half year profits.
The resources index was up 3.68%, which helped
offset a fall in industrials, led by a slump in the shares of
Naspers Ltd and subsidiary Prosus, which were
down on increased scrutiny of tech companies in China.
Naspers, through Prosus, holds around a 30% stake in Chinese
internet and gaming giant Tencent.
Bonds strengthened, with the yield on the benchmark
government bond due in 2030 down 13 basis points at 8.83%.
(Reporting by Olivia Kumwenda-Mtambo and Promit Mukherjee
Editing by Tomasz Janowski and Mark Potter)