Rand hits new 13-yr low on US rate hike hopes

Johannesburg - The rand fell to a new 13-year low against the dollar on Monday, after investors sold off emerging market currencies amid heightened expectations of an imminent interest rate hike in the United States.

The rand stumbled 0.7% to R12.1270 to the greenback, its softest level since early 2002, according to Thomson Reuters data.

The dollar rose to an 11-year high against the world's major currencies and US bond yields jumped after US jobs figures reinforced expectations the Federal Reserve will push ahead with its first rate hike in almost a decade.

Prospects of policy tightening in the world's biggest economy have dented investor appetite for emerging market assets which, while offering higher yields, are perceived as carrying higher risk.