• Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

  • The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

All data is delayed
See More

Rand breaches R16/$ in emerging market selloff

Jan 07 2016 10:00

Johannesburg - The rand fell nearly 1% against the dollar on Thursday, sliding towards December's record lows as renewed concerns about China's economy spurred an emerging market selloff.

The rand was also victim to South Africa's weak economic fundamentals, with a survey this week showing private sector activity shrank at a faster pace in December, with output dropping.

READ: SA private sector remains in doldrums, PMI shows

At 09:04, the rand traded at R15.9555 to the greenback, down 0.65% from Wednesday's close in New York.

It had fallen to 16.0050 earlier in the session, close to the all-time low of 16.0485, reached in mid-December after President Jacob Zuma fired finance minister Nhlanhla Nene.

Thursday's move largely reflected a retreat in emerging Asian currencies as China accelerated the yuan's depreciation, heightening concerns over the world's second-largest economy.

The bourse was not spared the selloff, with the Top 40 and broader All-share indices each dropping 2% soon after the market opened at 09:00.

"There seems to be an awful lot of pessimism surrounding financial markets at the moment," Standard Bank trader Warrick Butler said.

Government bonds followed the weak trend, with the yield on South Africa's benchmark 2026 issue adding 2.5 basis points to 9.58%.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

rand  |  markets  |  currencies


Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote