The dollar was down about 0.7% against a basket of global
currencies as investors speculated the Fed would no
longer raise rates by 50 basis points this month after the
sudden collapse of Silicon Valley Bank.
Investors will scrutinise Tuesday's U.S. inflation data to
predict how hawkish the central bank may be.
Jitters surrounding the collapse of Silicon Valley Bank,
under U.S.-listed SVB Financial Group , prompted
concerns over whether other banks could be facing similar
problems.
On the Johannesburg Stock Exchange, shares in the banking
sector were down around 4%.
"Our bank shares have been clobbered, absolutely clobbered,"
said Sasfin equity strategist David Shapiro, adding the move was
in line with the selloff in banking shares globally.
Stocks on the JSE were down overall, with the blue-chip
Top-40 index down 1.36% while the broader all-share
index closed 1.25% lower.
South African lender Absa Group reported a 13% rise
in full-year profit on Monday, driven by a rebound in economic
activity as the effects of the COVID-19 pandemic waned.
Mobile operator MTN Group reported a 16.9% rise in
full-year earnings, but revised the medium-term profit margin
target range for its South African business down due to power
outages.
The government's benchmark 2030 bond was
stronger, with the yield down 13 basis points to 10.025%.
(Reporting by Alexander Winning and Tannur Anders; Editing by
Nellie Peyton and Kirsten Donovan)
(Updates prices to reflect afternoon trade)
JOHANNESBURG, March 13 (Reuters) - The South African
rand firmed on Monday as the dollar fell sharply on expectations
that the largest U.S. bank failure since the 2008 financial
crisis would prompt the Federal Reserve to slow the pace of its
interest rate hikes.
At 1531 GMT, the rand traded at 18.1850 against the dollar , about 0.8% firmer than its previous close.
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