Rand falls to new four-year low

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IOL world currency1 Graphic: Renjith Krishnan.

Johannesburg - South Africa's rand fell nearly 2 percent to the dollar on Monday, its weakest level in four years, as stronger than expected US data prompted a broad-based rally in the greenback against emerging market currencies, market watchers said.

The rand hit a session low of 9.1220/dollar and was at 9.11 by 17:10 SA time, down 1.8 percent from Friday's close at 8.95.

“The US December durable good orders number ... was much stronger than expected and it caused a small spike in US treasuries,” said Roderick Ngotho, an emerging markets forex strategist at RBS.

“It seems emerging market rates may have reacted the same way, which has caused broad based EM forex weakness.” - Reuters

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