OWN CORRESPONDENT, Johannesburg | Tuesday 7.00pm.
THE rand weakened dramatically on Tuesday, rising above the R6 to the dollar mark for the first time in months and causing anxiety in local bond markets where the yield on the R150 shot up to 15,95%.
However, the rand’s weakness pushed up the gold index 13 points to 917, as the industry benefits from a decline in the exchange rate.
The financial index dropped from 9334 points to 9160, the industrial index from 6808 points to 6762, and the all share from 5880 points to 5863.
In the East and Europe, there were no dramatic moves, most markets dropping slightly.
In the United States stocks dropped on worries over the Brazilian economy. The Brazilian Bovespa exchange dropped hard on Tuesday over worries about a debt payment moratorium instituted by Minas Gerais, the country’s third largest province.
The dollar climbed against the yen on rumours of market intervention by the Bank of Japan.
Gold closed at $290,15 an ounce, down $1,35.
The repo rate dropped to 18,971% from Monday’s 18.981%.