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South African Rand Slumps for Fourth Day as Bonds Extend Selloff

  • Inflation expectations surge to highest since August
  • Bond yields rise to five-month high as rate increase seen
Updated on

South Africa’s rand slumped for a fourth day, falling to a 10-week low against the dollar and bond yields climbed to five-month highs as a global debt selloff intensified amid expectations of rising inflation.

The currency fell as much as 1.3 percent before paring the decline to trade 0.7 percent lower at 14.4410 per dollar by 1:50 p.m. in Johannesburg, heading for the weakest closing level since Sept. 2. Yields on benchmark government bonds due 2026 climbed 8 basis points to 9.26 percent, the highest in more than five months. The yield on the country’s 10-year dollar bonds jumped 17 basis points to 5.06 percent, the highest since March.