Rand Falls Most in Five Years as Trump Bond Selloff Worsens
- U.S. President-elect’s spending plan may fuel inflation
- General risk-off sentiment drives emerging currencies weaker
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South Africa’s rand slumped the most five years, leading global currency declines against the dollar as a global bond selloff worsened amid concern that spending by the Donald Trump administration will fuel inflation.
The rand fell as much as 5 percent and traded 4.7 percent weaker at 14.1134 per dollar by 6:04 p.m. in Johannesburg, the biggest plunge on a closing basis since September 2011 and the most among 31 emerging-market and developed-nation currencies. The rand fell the most in eight years against the British pound, while government bond yields rose to two-month highs.