Rand wobbles amid fears of Fed rate hike
THE rand weakened for second straight session as increased bets of an interest rate hike in the US dampened demand for emerging currencies globally.
Stocks gained amid a mixed market led by investors buying back into the resources sector. By 1615 GMT the rand had slipped 0.7 percent to 14.0375 per dollar, its weakest since Tuesday, following a rally to one-week highs on reduced concerns over the future of the finance minister.
The unit lost bout 4 percent against the dollar on October 11 when state prosecutors announced fraud charges against Finance Minister Pravin Gordhan for firing his deputy at the revenue service and then rehiring him as consultant.
Gordhan, due to deliver his mid-term budget before Parliament next week, has called the charges “frivolous”.
Government bonds were weaker, with the benchmark paper due in 2026 adding 4 basis points to 8.83 percent.
On the bourse, the benchmark Top-40 index rose 0.45 percent to 45 069 points while the All-Share index firmed 0.41 percent to 51 629 points. – Reuters