SA’s rand near three-week lows as EM appetite wilts
The South African rand traded near a three-week low against the dollar late on Thursday.
JOHANNESBURG - The rand traded near a three-week low against the dollar late on Thursday, reflecting lukewarm demand for emerging-market assets as the global economic outlook worsens.
With no domestic data to drive sentiment, the rand also fell victim to investors' concerns over renewed political tensions in Ukraine.
At 1530 GMT, the rand was trading at 11.1780 to the dollar, down 0.28 percent from Wednesday's close in New York, after falling to a session low of 11.1945.
Government bonds were also weaker, nudging the yield for paper due in 2026 - the benchmark for the secondary market - up 1.5 basis points to 7.975 percent.
"The rand, as a lightning rod for shifts in EM sentiment, is experiencing the pain of an investor base which is pre-empting stronger geopolitical fallout in the East by reducing EM exposure," Tradition Analytics said in a market note.