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Johannesburg - The rand hit a two-week low against the dollar on Thursday, dropping through key levels and weakening along with other emerging market currencies as investors cut back on risky assets.
The rand fell 1.5% to R8.2490/$ in the local session, its weakest since December 22. Dealers said the currency’s weakness was somewhat exaggerated by the lack of players in the market.
“A relatively quiet day although a fairly wide range (with) the rand broadly tracking risk sentiment as we saw a risk selloff earlier this morning,” said Duncan Howes, a currency trader at Absa Capital.
The rand got a brief lift on better-than expected employment numbers out of the United States before concerns about Europe overtook the market again.
“The euro remains under pressure with a stronger dollar so I think the focus will definitely be on unemployment numbers tomorrow (Friday) from the United States,” Howes said.
The rand might find it hard to weaken past R8.28/$, its previous low, Howes said.
Government bonds were slightly weaker, with the yield on the 2015 bond edged up 1.5 basis points to 6.865%, while the 2026 yield added 2.5 basis points to 8.66%.
The rand fell 1.5% to R8.2490/$ in the local session, its weakest since December 22. Dealers said the currency’s weakness was somewhat exaggerated by the lack of players in the market.
“A relatively quiet day although a fairly wide range (with) the rand broadly tracking risk sentiment as we saw a risk selloff earlier this morning,” said Duncan Howes, a currency trader at Absa Capital.
The rand got a brief lift on better-than expected employment numbers out of the United States before concerns about Europe overtook the market again.
“The euro remains under pressure with a stronger dollar so I think the focus will definitely be on unemployment numbers tomorrow (Friday) from the United States,” Howes said.
The rand might find it hard to weaken past R8.28/$, its previous low, Howes said.
Government bonds were slightly weaker, with the yield on the 2015 bond edged up 1.5 basis points to 6.865%, while the 2026 yield added 2.5 basis points to 8.66%.
