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JOHANNESBURG — The rand kept declining against the dollar at midday yesterday after overnight losses due to a worldwide commodity sell-off and a firmer greenback.
Weak local first-quarter employment data, released on Monday by Statistics SA, also put pressure on the rand.
The local unemployment rate rose to 26,7 percent in the first quarter of 2016 from 24,5 percent in the fourth quarter of last year.
Concern about a possible downgrade by ratings agencies Fitch and Standard & Poor’s later this year also weighed on the rand.
At 11.31am‚ the rand was at 15,3655 to the dollar from 15,1796 at Monday’s close. It was at 17,4950 against the euro from 17,2780 previously‚ and at 22,1904 against the pound from 21,8670 previously.
The euro was at $1,1385 from $1,1382. NKC research analysts said the rand traded to its weakest level in four weeks during the European session on Monday.
“Moody’s Investors Service’s decision not to downgrade the troubled sovereign provided no respite as most still expect either Fitch or Standard & Poor’s to downgrade SA to subinvestment grade later this year, maybe as early as next month,” the analysts said. — BDLive
derick.khumalo