Rand falls to 13-year low after US jobs data
Fin24

Rand falls to 13-year low after US jobs data

2015-03-06 18:43

Johannesburg - The rand fell to 13-year low and government bonds also slid sharply on Friday, as emerging markets were heavily sold off after US job numbers strengthened the case for the Federal Reserve to hike interest rates.

The rand tumbled nearly 2% to a session trough of R12.0650, its weakest level since early 2002, according to Thomson Reuters data.

READ: JSE surges on financial and industrial stocks

In fixed income, the yield on the benchmark 2026 bond jumped 20.5 basis points to 7.95%, a level last seen on January 5.

The dollar rose to an 11-year high against the world's major currencies and US bond yields jumped after US jobs figures reinforced expectations the Federal Reserve will push ahead with its first rate hike in almost a decade.

Prospects of policy tightening in the world's biggest economy have dented investor appetite for emerging market assets which, while offering higher yields, are perceived as carrying higher risk.

Comments
  • Zahir - 2015-03-06 18:55

    Buy toilet paper it will be worth more

      Carlos Manuel Veloso - 2015-03-06 19:43

      South Africa was considered the third worst economy in the World by bloomberg yesterday it's why the rands is so weak.

      Carlos Manuel Veloso - 2015-03-06 19:43

      South Africa was considered the third worst economy in the World by bloomberg yesterday it's why the rands is so weak.

      Joseph Shange - 2015-03-06 20:53

      We going to be in trouble when the real recession hits. I am holding onto my gold and bitcoins that's for sure.

      Mundus Uys - 2015-03-09 05:47

      Joseph. When last did you view a bitcoin chart? The 'beany baby' craze is over. Dump the bitcoin as fast as your ZAR's

  • Saharah Rhodes - 2015-03-06 20:30

    Bananas anyone?

  • Konstabel Koekemoer - 2015-03-06 20:48

    More pressure on the fuel price and inflation will be on the up again.

  • Kevin Britz - 2015-03-06 21:08

    I hope you are happy cANCer, you got what you wanted! What are you going tell your sheeple when they can't afford to pay for basic food on their huge salaries? Let me guess, it's apartheid's fault?

  • Mokhuti Maribe - 2015-03-07 09:02

    Anc must do something before our country become the next Zimbabwe. And stop blaming apartheid all the time, because if you can see in apartheid time our country's economy was running well . Please anc do something and stop corruption.

      Roger Pacey - 2015-03-07 11:15

      I don't see why the prospect of the SA economy becoming like that of Zimbabwe should worry the ANC. Like the ZANU-PF chefs, they have isolated themselves from the worst effects of a contracting economy. Just look at the lavish birthday party that has just been thrown for Mr Mugabe. Rest assured, the chefs in Zimbabwe aren't suffering at all.

  • Mark Crozier - 2015-03-07 12:45

    So things improve in the US and we get kicked in the balls? That's great...

      Roger Pacey - 2015-03-07 12:52

      One interpretation of that outcome is that the USA is doing things right and SA is doing things wrong. The employer payrolls in the US increased by 295 000 jobs in February, bringing unemployment to 5,5%; that's pretty much full employment. Compare that to South African figures.

      Sterling Ferguson - 2015-03-07 15:02

      @Roger, what happened with BRICS that Zuma was raving about? He also talks about the future would be in China.

      Roger Pacey - 2015-03-07 15:32

      @Sterling The things people were saying about China today are the same as they were saying about Japan in the 1980s. Japan was supposed to overtake the US as the world's largest economy. That didn't happen. Despite far-reaching economic reforms, China is not a free country and I think this will ultimately limit its growth if not usher in its downfall. It wouldn't surprise me if it turned out that the president has made a wrong call on this issue.

  • Graham Radburnd - 2015-03-07 16:07

    As 1 of many South Africans that work outside of South Africa, and get paid in US$, that's another unasked for salary increase. Many thanks USA.

  • Elena Genuos - 2015-03-07 16:47

    Many people it seems can't read. Emerging market currencies are all taking a hit. It has nothing specifically to do with South Africa.

      Yuri Serfontein - 2015-03-09 12:01

      Yes and no.....a lot of this could have been mitigated by sounder financial policies locally. For simplicity sake - at the end of the day, if you hot, you hot. and the money will flow inwards. Unfortunately we not,and the money is flowing the other way

  • Fils Mbambi - 2015-03-09 05:52

    It has nothing to do with SA economy.

  • Fils Mbambi - 2015-03-09 05:54

    It has everything to do with America economic policies. All currencies have been hit. including British pounds, euro etc.....

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