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Cape Town -The rand lost just under 1% of its value to a strengthening US dollar Tuesday, together with other emerging market currencies.
The local currency was trading at R14.09 to the dollar when markets opened, and had fallen to R14.22 to the greenback by 12:15. It remained steady into the early afternoon, trading at R14.21 to the dollar at 14:30.
TreasuryOne dealer Wichard Cilliers told Fin24 that the weakening rand was mainly due to US dollar strength.
Cilliers said that, in addition to the rand, other emerging market currencies such as the Russian ruble and the Turkish lira lost ground in concert with the rand.
Both had lost close to 1%.
The rand also lost ground against the British pound (0.58%) and the euro (0.38%), but less than against the dollar.
"The euro and the pound are also on the back foot against the US dollar. So currently it is just some US doller strength feeding through the market," he said.
Economist Gerrit van Rooyen from NKC African Economics agreed that the rand was under pressure against the US dollar in line with other emerging markets.
"The trade-weighted US dollar ticked stronger on the back of news that progress was being made on the US tax reform plan and ahead of US job openings data due later in the day," he said.
"The political turmoil and threats of war stemming from Saudi Arabia could also be weighing on risk sentiment, causing some emerging market weakness."
*Update on November 7 at 13:20. This article was updated to include comment by Gerrit van Rooyen.
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