Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rand Declines Second Day on U.S. Debt Concern; Bonds Retreat

Don't Miss Out —
Follow us on:

Jan. 3 (Bloomberg) -- The rand declined for a second day as concern U.S. lawmakers won’t agree to raise the debt ceiling for the world’s biggest economy sapped demand for riskier, emerging-market assets.

South Africa’s currency weakened 1.1 percent to 8.5767 per dollar as of 3:38 p.m. in Johannesburg. Yields on benchmark 10.5 percent bonds due December 2026 rose seven basis points, or 0.07 percentage point, to 7.31 percent.

Bonds gained for the first time in six days yesterday after a U.S. budget deal that averted automatic tax increases and spending cuts. The dollar advanced against most of its 16 major counterparts today as officials turned their attention to a debate over raising the $16.4 trillion debt limit. An increase will be needed as early as mid-February, according to the U.S. Congressional Budget Office.

“The fiscal challenges still exist; they have not been resolved,” George Glynos, a Johannesburg-based analyst at ETM Analytics, and colleagues wrote in e-mailed comments. “Risk assets will start to once again price in the uncertainty.”

The Standard & Poor’s GSCI Index dropped for the first time in three days as the prices of metals including copper and nickel declined. Metals and other commodities account for 45 percent of South Africa’s exports, according to government data.

To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.