South African assets slide in risk-off trade linked to Ukraine

South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/IllustrationRegister now for FREE unlimited access to Reuters.comJOHANNESBURG, Jan 24 (Reuters) – South Africa’s rand, local stocks and government bonds fell on Monday as investors dumped riskier assets worldwide on fears of a possible Russian attack on Ukraine.The U.S. State Department on Sunday said it was ordering diplomats’ family members to leave Ukraine – one of the clearest signs yet that American officials are bracing for an aggressive Russian move in the region. read more At 1135 GMT the rand traded at 15.2825 against the dollar, around 1.2% weaker than its closing level on Friday.Register now for FREE unlimited access to Reuters.comThat brought to a halt last week’s rand rally on expectations that the South African Reserve Bank (SARB) will raise interest rates this week at its first monetary policy meeting of 2022. The SARB’s rate decision is due on Thursday, with economists polled by Reuters expecting the repo rate (ZAREPO=ECI) to be increased by 25 basis points to 4%.The U.S. Federal Reserve also holds a policy meeting over Tuesday and Wednesday, with traders set to scrutinise its statement for clues about the speed and scale of its normalisation plans. read more Other potential drivers this week include the SARB’s leading business cycle indicator (ZALEAD=ECI) on Tuesday, December producer inflation data (ZAPPIY=ECI) on Thursday and December budget figures (ZABUDM=ECI) on Friday.The yield on the South African government’s 2030 bond rose 5 basis points to 9.29%, reflecting a price fall.The Johannesburg Stock Exchange’s Top-40 Index (.JTOPI) retreated by a little more than 2%.Register now for FREE unlimited access to Reuters.comReporting by Alexander Winning Editing by Shounak Dasgupta and David Goodman Our Standards: The Thomson Reuters Trust Principles.