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Johannesburg - The rand fell on Wednesday as a rise by the euro left emerging-market currencies weaker, while a policy review by the South African Reserve Bank made it clear the central bank was not inclined to prop up the local currency.
The rand was at R10.2040/$ at 14:36 GMT, down 0.8% from the previous day's New York close. Meanwhile, the euro rose more than 1% against the rand.
"There's been a big weakening in emerging markets against the euro," said Rand Merchant Bank currency trader Jim Bryson. "The low on euro/rand ... has moved twice as much as the dollar rand."
The euro strengthened after Germany's two main political parties agreed to form a grand-coalition government. Its gains came after South Africa's central bank released a monetary policy review late on Tuesday and reiterated its opposition to intervening in the foreign-exchange market, despite the rand's 20% decline against the dollar so far this year.
Trading on Thursday is likely to be muted by the Thanksgiving holiday in the United States.
Domestically, producer inflation data for October is due to be released. Economists polled by Reuters expect PPI to slow to 6.5% year-on-year in October, from 6.7% in September.
Government bonds were weaker, with the yield on the 2026 and 2015 instruments each 6.5 basis points higher at 8.315% and 6.2% respectively.
The rand was at R10.2040/$ at 14:36 GMT, down 0.8% from the previous day's New York close. Meanwhile, the euro rose more than 1% against the rand.
"There's been a big weakening in emerging markets against the euro," said Rand Merchant Bank currency trader Jim Bryson. "The low on euro/rand ... has moved twice as much as the dollar rand."
The euro strengthened after Germany's two main political parties agreed to form a grand-coalition government. Its gains came after South Africa's central bank released a monetary policy review late on Tuesday and reiterated its opposition to intervening in the foreign-exchange market, despite the rand's 20% decline against the dollar so far this year.
Trading on Thursday is likely to be muted by the Thanksgiving holiday in the United States.
Domestically, producer inflation data for October is due to be released. Economists polled by Reuters expect PPI to slow to 6.5% year-on-year in October, from 6.7% in September.
Government bonds were weaker, with the yield on the 2026 and 2015 instruments each 6.5 basis points higher at 8.315% and 6.2% respectively.
