Johannesburg – The rand, already on a losing streak, could be heading for more pain, as emerging markets face ongoing pressure, warned analysts on Thursday.
The local currency hit a 10-week low, reaching a level last seen at the end of May.
Meanwhile, the dollar strengthened on Thursday on the back of better-than-expected jobs data.
“Emerging market currencies are under fire, in particular the Turkish Lira, as concerns around central bank policies and dwindling reserves caused havoc,” said senior currency dealer at TreasuryONE, Andre Botha.
“The ZAR is also under pressure and traded at R17.60 at one stage today.
“Currently, we are trading around R17.52 and we need to watch this level closely. If we get a sustained break above this level the ZAR could be in for more pain.”
The rand recently breached R17.00/$, in what was, at the time, its weakest level in several weeks.