SA rand reaches 13 to the dollar
SA's rand fell nearly 1% against the dollar, breaching 13.00 for the first time in 14 years.
JOHANNESBURG - South Africa's rand fell nearly 1 percent against the dollar on Thursday, breaching 13.00 for the first time in 14 years as concerns about slowing growth in China weighed on commodity currencies.
The rand touched a session low of 13.0050 to the greenback, its weakest since December 2001 according to Thomson Reuters data.
Two major international factors have seen emerging market currencies taking major loses against the dollar.
On Wednesday night, the US fed hinted that it was moving towards a possible interest rate hike.
This has put more pressure on the rand and a number of other currencies.
David Stubbs of JP Morgan Chase said the US fed has no choice.
He said, "This is an incredibly difficult decision and there is data pulling them both ways, considering the economy is not exactly where the fed would want it to be."
Added to fears of a US interest rate hike, the Chinese economy and the devaluation of the yuan have also affected emerging market currencies.
General consensus is that these currencies are set to remain under pressure for some time, with commodities also taking strain.
Additional reporting by Reuters