Rand continues to slide against major currencies

US jobs data and statements from the Federal Reserve have had a profound effect on the rand.

FILE: A number of international factors are continuing to affect emerging market currencies, with fears that the local currency could breach the R15 to the dollar level soon. Picture: EWN.

JOHANNESBURG - The rand has continued its slide against major currencies trading at around 14.31 to the dollar and 21.67 to the pound.

A number of international factors are continuing to affect emerging market currencies, with fears that the local currency could breach the R15 to the dollar level soon.

US jobs data and statements from the Federal Reserve have had a profound effect on the rand, with a possible US interest rate hike next month affecting emerging market currencies.

Nedbank economist Isaac Matshego said, "Globally, the focus is all on the US Fed. On Friday, a very strong jobs number and that puts the rand under a lot of pressure.

The Monetary Policy Committee will decide on the repo rate in just over a weeks' time; its last meeting for the year.

Reserve Bank Governor Lesetja Kganyago has already warned that he won't hesitate to hike the rate if currency pressure becomes too much.