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Morgan Stanley said the rand is the emerging-market currency most vulnerable to rising US Treasury yields, and forecast it could fall about 6% to 15.50 per dollar before the October 24 budget statement. Foreign investors hold about 40% of South Africa's rand-denominated government bonds.
The rand had slumped 2% after 10-year US yields reached their highest since 2011.
A weaker rand would raise South African import costs for feed ingredients, while the rising US yields that drive the move also strengthen the dollar globally.
moneyweb.co.zaRobert Brand, BloombergOct 4, 2018Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
