BLBG:Rand Weakens as Fears of Asian Slowdown Lower Commodity Prices
The rand weakened against the dollar for the first time in five days after commodity prices dipped on concern that growth is slowing in Asia.
South Africa’s currency depreciated as much as 0.1 percent before trading unchanged at 8.1413 as of 8:15 a.m. in Johannesburg, extending its decline for the month to 0.3 percent. The rand has fallen the most this year among its emerging-market peers, down 19 percent.
Economic reports today showed Japan’s industrial production dropped and confidence among South Korean manufacturers sank to a 30-month low. Gold moved lower for a second day, slipping 0.1 percent to $1,588.88 an ounce, while platinum was 0.1 percent down at $1,427.25. Commodities make up more than half of South Africa’s total exports, according to Rand Merchant Bank.
The yield on South Africa’s 13.5 percent bonds due 2015 retreated for a second day, down less than a basis point, or 0.01 percentage point, to 6.76 percent.
To contact the reporters on this story: Jana Marais in Johannesburg at jmarais@bloomberg.net;
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
