Rand hits 14-year low against dollar
The rand weakened to breach R13 to the dollar for the first time in almost 14 years. It tumbled to its lowest since December 2001, weighed down by a decline in commodity prices that threatens to slow growth amid a sell-off in emerging markets."For South Africa Inc, the weaker rand is more bad news than good news," said Mohammed Nalla, head of strategic research at Nedbank."South Africa is a capital-scarce economy."In the context where global capital flows are becoming a lot more discerning, a weak rand doesn't give us any competitive advantage," said Nalla.The rand is being hurt by lower prices for resources, which account for over half of exports, slowing growth in China - the top destination for its raw materials - and the prospect of a US Federal Reserve interest rate increase.The rand dropped as much as 0.9% to R13.0030 a dollar before paring losses to trade 0.3% down yesterday afternoon in Johannesburg, extending its slide this year to 10%.The rand may decline to R13.15 to the dollar before gaining support, Nalla said. ..
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