Rand hits 13-Year-Low against Greenback

The Rand fell to a new 13 year-low against the dollar this morning, extending losses triggered by a selloff of emerging market currencies on expectations that US interests rates could rise by mid-year. At 07:47 the rand was trading at R12.3775/$, its weakest level since January 2002, according to Thomson Reuters data.

Riskier assets have come under pressure after Friday’s robust US employment data increased expectations that the Federal Reserve could raise rates as soon as June – a prospect that appeared relatively remote a few weeks prior. Renewed concern about Greece’s debt talks with eurozone partners and deflationary pressures in China have also weighed on emerging markets in general. “With little in the way of data today, (dollar) performance will continue to drive the (rand) and, in turn, local yields,” Barclays Africa said in a note.

Government bonds have not been spared in the selloff, with the yield for the 2026 benchmark up 3.5 basis points to 8.010%.

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