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Rand edges lower as US data triggers sell-off

Johannesburg - The rand edged weaker on Friday after tumbling to its weakest in nearly a decade-and-a-half as US GDP data bolstered the case for a Federal Reserve rate hike this year.

At 06:15 GMT the rand weakened 0.1% to R12.7150/$, regaining some ground after slipping to R12.7550 overnight, a level last seen in December 2001.

The US economy grew 2.3% at an annual rate in the second quarter, data showed on Thursday, triggering a heavy selloff as investors ditched emerging market assets in favour of the dollar, with the rand among the hardest hit.

The rand has fallen 10% since the beginning of 2015 and may weaken further in the session if government budget and trade data disappoint.

READ: Credit growth slows in June

"With the trade data out today coupled with the US Chicago PMI index anything is possible," said Standard Bank trader Warrick Butler, adding that a push past the 12.75 technical support could open the door to new lows.

Yields on government bonds were flat after rising in the previous session, with the benchmark 2026 issue unmoved at 8.23%.

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Rand - Dollar
19.00
-0.5%
Rand - Pound
24.02
-0.5%
Rand - Euro
20.51
-0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.6%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,209.06
+0.7%
Silver
24.59
-0.2%
Brent Crude
86.09
-0.2%
Top 40
68,122
+0.7%
All Share
74,310
+0.5%
Resource 10
56,908
+2.2%
Industrial 25
103,615
+0.3%
Financial 15
16,488
-0.2%
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