Rand weakens to 7 month low. Johannesburg - The rand fell to seven-month lows against the dollar on Friday, largely reflecting a stronger greenback as recent data backs the case for monetary tightening in the United States. At 15:50 GMT the rand traded at 10.9985 versus the dollar, down 0.21% from Thursdays close. If fell to 11.0300 earlier in day, the weakest it has been since February 21 according to Thomson Reuters data. Government bonds followed suit, with the yield on the 2026 benchmark adding 4.5 basis points to 8.26%. The rand was one of the biggest casualties in a basket of 20 emerging market currencies, outperforming only the Turkish lira , the Russian rouble and Brazils real The latest bout of EM currency weakness largely reflects the depreciation of the euro against the dollar, rather than home-grown economic vulnerabilities, William Jackson, an emerging markets analyst at Capital Economics, said. But rand sentiment has taken a knock from weak domestic economic indicators released this week, including a gaping current account deficit, while factory output was at its weakest in five years.
Posted on: Sun, 14 Sep 2014 10:45:22 +0000
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