(Reporting by Tannur Anders Editing by Alexander Winning)
JOHANNESBURG, May 11 (Reuters) - The South African rand
was trading near a three-year low in early trade on Thursday,
under pressure from the worst power cuts on record that experts
say could get worse in the coming months.
Investor sentiment towards the rand has soured badly this
week, pushing the currency to its lowest level against the
dollar since May 2020 on Wednesday.
The rand is down almost 3% this week against the greenback,
underperforming emerging market peers.
At 0606 GMT on Thursday the rand was trading at 18.9075 to
the U.S. dollar , more 0.2% than weaker than its
previous closing level.
The dollar was marginally stronger against a basket of major
currencies , as traders assessed the implications of
slowing U.S. inflation for the Federal Reserve's interest rate
path.
South Africa's struggling state utility Eskom is currently
implementing scheduled blackouts lasting more than 10 hours a
day for many households and businesses.
President Cyril Ramaphosa is expected to answer questions
from lawmakers on his government's efforts to ease the crippling
power shortage from 1200 GMT.
On the economic data front, March mining output will be released at 0930 GMT and March manufacturing production around 1100 GMT.
South Africa's benchmark 2030 government bond was
slightly weaker in early deals, as the yield was up 4 basis
points to 10.600%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.