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Johannesburg - The rand stumbled to a fresh five-year low against the dollar on Thursday, falling alongside other emerging market currencies as investors bet the US central bank will press on with cutting back stimulus.
The rand touched a low of R10.95 per dollar, a level last reached in October 2008, and down nearly 0.7% from its New York close on Wednesday.
Government bonds fell in tandem with the currency, pushing the yield on the 2026 benchmark 5.5 basis points higher to 8.395%, its highest since early December.
The yield for the shorter-dated 2015 instrument added 6 basis points to 6.27%.
The rand has already weakened nearly 5% against the dollar in the first two weeks of the new year, after losing a quarter of its value in 2013 as a series of strikes in the manufacturing and mining sectors hit sentiment.
South Africa's budget and current account deficits, at about 5% and nearly 7% of GDP respectively, also make the currency more vulnerable than most emerging market peers during periods of global risk aversion.
The rand touched a low of R10.95 per dollar, a level last reached in October 2008, and down nearly 0.7% from its New York close on Wednesday.
Government bonds fell in tandem with the currency, pushing the yield on the 2026 benchmark 5.5 basis points higher to 8.395%, its highest since early December.
The yield for the shorter-dated 2015 instrument added 6 basis points to 6.27%.
The rand has already weakened nearly 5% against the dollar in the first two weeks of the new year, after losing a quarter of its value in 2013 as a series of strikes in the manufacturing and mining sectors hit sentiment.
South Africa's budget and current account deficits, at about 5% and nearly 7% of GDP respectively, also make the currency more vulnerable than most emerging market peers during periods of global risk aversion.
