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Rand weakens as China growth woes weigh

Johannesburg - The rand fell to its weakest in more than two weeks against the dollar on Friday as concerns about growth in China, a key importer of commodities, overrode a boost from a domestic interest rate increase.

The rand was down 0.5% at R12.5300/$ by 08:37 after ending the New York session on Thursday at 12.4675.

Government bonds followed suit, with the yield for debt due in 2026 adding 1.5 basis points to 8.13%.

Save for Russia's rouble, the rand was the weakest performer in a basket of 25 emerging market currencies tracked by Thomson Reuters.

It was on track for a third straight daily loss despite the South African Reserve Bank raising interest rates by 25 basis points on Thursday to curb inflationary risks.

READ: Sarb increases repo rate by 25 basis points - what it means

Commodity currencies in general were under pressure after a survey showed the factory sector in China contracted by the most in 15 months in July.

"The rand is on the back foot due to renewed concerns about China’s growth and the attendant impact on metals prices," Rand Merchant Bank currency analyst John Cairns said in a note.

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Rand - Dollar
19.09
-1.0%
Rand - Pound
24.05
-0.7%
Rand - Euro
20.58
-0.5%
Rand - Aus dollar
12.39
-0.3%
Rand - Yen
0.13
-0.9%
Platinum
894.64
-0.3%
Palladium
992.99
-0.9%
Gold
2,197.50
+0.1%
Silver
24.44
-0.8%
Brent Crude
86.09
-0.2%
Top 40
67,880
+0.3%
All Share
74,091
+0.3%
Resource 10
56,315
+1.2%
Industrial 25
103,611
+0.3%
Financial 15
16,459
-0.4%
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