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Johannesburg - The rand was trading near its lowest level in more than three weeks as the dollar surged on comments by US Federal Reserve head Janet Yellen signalling a faster-than-expected rise in interest rates.
The rand was at R10.9390/$ at 15:49 GMT, down more than 0.6% from Wednesday's New York close. Earlier, it reached a low of R10.9785/$, its weakest level since February 24.
In her first news conference as head of the Federal Reserve, Yellen said the US central bank would probably end its massive bond-buying programme later this year.
She said it could start raising interest rates around six months later, sooner than markets had anticipated.
"The market has weakened on the back of the surprising Yellen comments which are much more hawkish and sent US rates higher," a trader said.
"As a result emerging markets have been under pressure."
The yield on South Africa's 2026 government bond gained 7 basis points to 8.615%, its highest since late February, while that on the 2015 paper was up 11.5 basis points at 7.035%.
The market will be closed on Friday for a public holiday.
The rand was at R10.9390/$ at 15:49 GMT, down more than 0.6% from Wednesday's New York close. Earlier, it reached a low of R10.9785/$, its weakest level since February 24.
In her first news conference as head of the Federal Reserve, Yellen said the US central bank would probably end its massive bond-buying programme later this year.
She said it could start raising interest rates around six months later, sooner than markets had anticipated.
"The market has weakened on the back of the surprising Yellen comments which are much more hawkish and sent US rates higher," a trader said.
"As a result emerging markets have been under pressure."
The yield on South Africa's 2026 government bond gained 7 basis points to 8.615%, its highest since late February, while that on the 2015 paper was up 11.5 basis points at 7.035%.
The market will be closed on Friday for a public holiday.
