adminJOHANNESBURG — The rand was weaker against the dollar, almost touching the R14/$ level, at midday yesterday due to renewed dollar strength, which caused declines in emerging market currencies.
The greenback strengthened following comments from US Federal Reserve chairwoman Janet Yellen on Wednesday, indicating that a US rate hike in December is possible.
At 11.38pm the rand weakened to 13,9883 to the dollar after closing at 13,9590 the previous day. It was at 15,2006 against the euro from 15,1680 and at 21,5287 against the pound from a previous close of 21,4783.
The euro was at $1,0866 from a previous close of $1,0866.
TreasuryOne chief currency dealer Wichard Cilliers said the market was anxious and was awaiting firm affirmation of a rate hike in December.
“The rand is getting smashed across the board and once again has won the award for worst-performing emerging market currency,” he said.
The market was currently “risk averse, with investors looking to short riskier assets, with emerging market currencies taking the brunt of this dollar strength of late”, Cilliers said.— BDLive
Bongani Ndlovu
Online Reporter