Economics
Rand Drops to Record After South Africa Debt Rating, Outlook Cut
- Bond yields jump to highest level since February 2014
- `Brave leadership' needed to reignite economy, NKC says
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The rand fell to a record against the dollar and bonds tumbled, sending yields to their highest levels since February 2014, after Fitch Ratings cut South Africa’s credit rating and Standard & Poor’s lowered its outlook on the country’s debt.
The rand declined as much as 1.3 percent to 14.5629 per dollar before paring some of its losses, weakening with most major and emerging-market currencies as the greenback rose on speculation a strengthening U.S. economy will boost the pace at which the Federal Reserve increases interest rates. Yields on benchmark rand debt rose for a ninth day, increasing by the most in more than six weeks.