Rand softer on emerging markets sell-off

Johannesburg - The rand was still on the back foot on Thursday after falling to a three-week low overnight in an emerging market sell-off prompted by expectations of strong US jobs data in the next session.

At 08:44 the rand traded at R11.8280 per dollar, down 0.29% from its previous close.

The rand partly tracked the euro, which wallowed near its weakest level in over 11 years against the dollar as investors waited for the European Central Bank to announce more details of its bond-buying programme.

READ:Euro hovers near 11-year lows on dollar

While the eurozone struggles, recent data has pointed to a sustained recovery in the US, suggesting interest rates could soon rise in the world's biggest economy.

"So far this week we have seen the rand, as well as other EM currencies, lose value against the dollar in anticipation of this Friday’s employment data out of the US," Standard Bank executive for rand and EM spot trading Warrick Butler said.

In fixed income, the yield on the benchmark 2026 bond was up 3.5 basis points at 7.795%.