Rand Set for Biggest Weekly Slump Since August as Bonds Dumped
- Foreign investors sell most South African bonds since 2011
- Rand volatility jumps to highest among emerging market peers
What's Driving the Selloff in Emerging Markets?
South Africa’s rand extended losses to a third day and headed for the biggest weekly slump since August on concerns that Donald Trump will pursue policies that will spur capital outflows from developing economies and weaken their exports.
The rand fell as much as 2.5 percent before trading 1.4 percent weaker at 14.3120 per dollar by 3:30 p.m. in Johannesburg. The weekly decline of 5.1 percent is the most since the five days ended Aug. 26, when local markets were roiled by concerns that Finance Minister Pravin Gordhan would be arrested. The most the rand had lost before that was in December, when President Jacob Zuma fired then-Finance Minister Nhlanhla Nene. Three-month implied volatility on the rand is at the highest since Oct. 17 and the most among emerging markets.