Rand slumps more than 20c to the dollar as US treasury yields tick upwards
Emerging-market currencies were all under pressure, but the rand is performing worse than its peers, reaching an intra-day worst level of R12.5321
The rand extended losses against major global currencies on Wednesday afternoon, as the dollar tracked higher along with US treasury yields.Emerging-market currencies were all under pressure, but the rand performed worse than its peers, reaching an intra-day worst level of R12.5321 from Tuesday’s R12.3264Rising US treasury yields, in response to rising inflation, have put global equities and emerging-market currencies under pressure.Sentiment has turned risk off, as investors gauge to what extent other market participants will switch from equities into bonds — now offering higher yields, analysts said. Rising bond yields simultaneously make this asset more attractive to investors, while also raising borrowing costs for consumers and corporations."Markets are set to remain choppy as traders seek direction on a day of light economic calendar activity, with US treasuries remaining in focus," FxPro analysts said.At 2.19pm, the rand was at R12.502 to the dollar from R12.3264, R15.2324 to...
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