JOHANNESBURG: South Africa's rand stumbled into the New Year more than half a percent weaker against the US dollar on Friday, driven lower by increasingly negative sentiment towards riskier emerging market assets.
On Thursday China, the world's number two economy and a major trading partner for South Africa, said its official Purchasing Managers' Index (PMI) slipped to 50.1 in December, the lowest level of 2014.
Signs that the giant Asian economy's growth is cooling could see a decline in demand for metals and minerals, of which South Africa is major exporter, a trend already seen in November trade figures revealing domestic exports to Asia had tumbled by more than 16 billion rand.
By 0650 GMT, the local unit had softened 0.52 percent to 11.6200 per dollar, while the greenback soared to its highest levels in almost nine years against major global currencies.
Dollar strength, and persistently weak performance by European and developing economies, means the rand will remain vulnerable.
In fixed income, yields on the benchmark issue due in 2026 added 3 basis points to 7.99 percent.
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