Rand pulls back to R15
The rand weakens against the dollar as lower commodity prices and concerns about global growth hit emerging markets.
|||Johannesburg - South Africa's rand weakened more than one percent against the dollar on Friday, breaching key technical support levels as lower commodity prices and concerns about global growth hit emerging markets.
At 1050 GMT the rand had slipped 1.4 percent to 15.01 per dollar, moving back above the 15.00 mark for the first time in four sessions as investors cashed in on a recent rally.
“This pullback was to be expected,” said market analyst at ETM Analytics Ricardo Da Camara.
“From a technical view the USD/ZAR was quite oversold. It looks like cooperates and banks saw those levels around 14.70 as a buying opportunity.”
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The rand rallied to its firmest level in five weeks on Wednesday after Fitch affirmed South Africa's investment grade rating, but those gains were quickly eroded on concerns that the economy was heading into recession.
Traders also said demand for the rand would remain subdued ahead of a United States central bank meeting next week where the Federal Reserve is expected to keep interest rates on hold.
Stocks were also weaker, with the JSE securities exchange's Top-40 index down 0.36 percent to 46 963 points. The wider All-Share index was down 0.42 percent to 53,148 points.
Shares in MTN were up 14 percent after the mobile operator, Africa's largest, said it had agreed to settle a R25.01 billion fine imposed on its Nigerian operation.
REUTERS