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Johannesburg - The rand weakened against the dollar on Wednesday in what could be a negative trend for the currency going into 2015 after stronger-than-expected economic growth in the United States buoyed an already bullish dollar.
The world's number one economy grew at 5% in the third quarter, its quickest pace in 11 years, pushing the dollar index to eight-year highs while struggling emerging market currencies braced for additional sell-offs.
READ: US third quarter growth hits 11-year high
By 08:23 the rand had softened 0.07% to R11.6580/$, with a further slide on the horizon, as structural weaknesses in the domestic economy and falling commodity prices globally maintain pressure on the local unit.
The rand has already shed close to 25% against the dollar in 2014 as labour disruptions, chronic power cuts and yawning budget and current account deficits put off investors already spooked by weaknesses across developing economies.
Yields on local bonds were flat in early trade, with the benchmark issue due in 2026 unmoved at 8.055%.
Next Tuesday the November trade data will be published, currently gaping at a R21bn deficit due to falling exports and productivity.
The world's number one economy grew at 5% in the third quarter, its quickest pace in 11 years, pushing the dollar index to eight-year highs while struggling emerging market currencies braced for additional sell-offs.
READ: US third quarter growth hits 11-year high
By 08:23 the rand had softened 0.07% to R11.6580/$, with a further slide on the horizon, as structural weaknesses in the domestic economy and falling commodity prices globally maintain pressure on the local unit.
The rand has already shed close to 25% against the dollar in 2014 as labour disruptions, chronic power cuts and yawning budget and current account deficits put off investors already spooked by weaknesses across developing economies.
Yields on local bonds were flat in early trade, with the benchmark issue due in 2026 unmoved at 8.055%.
Next Tuesday the November trade data will be published, currently gaping at a R21bn deficit due to falling exports and productivity.
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