Rand plum­mets to new low against dol­lar

Weekend Argus (Saturday Edition) - - LIFE -

THE rand weak­ened sharply to a record low against the dol­lar af­ter firmer-than-ex­pected non-farm pay­rolls data from the US yes­ter­day.

By 1413 GMT the rand had slipped 2.0 per­cent to 14.1700, its weak­est level against the green­back as the grow­ing like­li­hood of a rate hike by the Fed­eral Re­serve in De­cem­ber pres­sured emerg­ing as­sets.

“The move is dol­lar bound, be­cause of the non-farm pay­rolls. It means they (US Fed) can start lift­ing in­ter­est rates and that is ob­vi­ously bad for the rand,” NKC African Eco­nom­ics chief econ­o­mist Christie Viljoen said.

The lo­cal unit ig­nored cen­tral bank data show­ing do­mes­tic net gold and for­eign ex­change re­serves edged up slightly to $41.308 bil­lion in Oc­to­ber but suc­cumbed to dol­lar strength fol­low­ing the pos­i­tive jobs data.

The dol­lar rose to a 6½ month high af­ter the US jobs re­port beat ex­pec­ta­tions, in­creas­ing 271 000 last month to its largest rise since De­cem­ber. Stocks also fell, with the blue-chip in­dex down 2.5 per­cent to 47 332 points fol­low­ing the US em­ploy­ment fig­ures. – Reuters

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