ADVERTISEMENT

South Africa's rand slips as growth concerns trigger global bond rout

JOHANNESBURG (Reuters) - South Africa's rand was on the back foot early on Thursday as emerging market currencies were pushed lower by a global bond rout triggered by worries over slow economic growth.

South African Reserve Bank Governor Gill Marcus shows off South Africa's new banknotes, which features an image of former president Nelson Mandela on the front and images of the country's Big Five wild animals on the reverse, before conducting the first transaction in Pretoria, in a file photo. REUTERS/Siphiwe Sibeko

Domestic issues also pressured the currency, with consumer confidence slumping in the first quarter of 2015 and power utility Eskom continuing with nationwide electricity cuts.

At 0630 the rand had softened 0.34 percent to 12.0530 per dollar, edging towards a two-week low beyond 12.10, having touched 11.91/$ in the previous session.

"Technically the rand is very messy," said Warrick Butler of Standard Bank. "U.S. data still dictates and yesterday’s lower than expected ADP payroll number was the cause behind the rand heading to 11.91-ish," the currency trader added.

Figures on Wednesday showed U.S. private sector employers in April hired the fewest workers in more than a year, raising a red flag for nonfarm payrolls due on Friday.

ADVERTISEMENT

Rising global oil prices, which hit a 2015 peak of $69.63, saw a global government bond sell-off intensify, with South Africa's inflation outlook set to deteriorate further.

Yields on government bonds rose, with the benchmark issue due in 2026 adding 6 basis points to 8.2 percent.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Wike thanks Tinubu for the opportunity to serve

Wike thanks Tinubu for the opportunity to serve

Tinubu’s aide distributes food items to 1,750 persons in FCT, Kwara

Tinubu’s aide distributes food items to 1,750 persons in FCT, Kwara

Court grants senator accused of forging NYSC certificate ₦50m bail

Court grants senator accused of forging NYSC certificate ₦50m bail

BREAKING: Delta monarch declared wanted by military surrenders to police

BREAKING: Delta monarch declared wanted by military surrenders to police

Renowned Canada-based Nigerian playwright, Oguntokun is dead

Renowned Canada-based Nigerian playwright, Oguntokun is dead

Kaduna Gov grants scholarship to 137 rescued schoolchildren, son of late teacher

Kaduna Gov grants scholarship to 137 rescued schoolchildren, son of late teacher

Siamese twin gets married while still conjoined with her sister

Siamese twin gets married while still conjoined with her sister

LP BoT kicks out Abure despite convention victory, takes over party affairs

LP BoT kicks out Abure despite convention victory, takes over party affairs

6 Labour Party lawmakers defect to PDP in Enugu State

6 Labour Party lawmakers defect to PDP in Enugu State

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT