CAPE TOWN: The rand was marginally softer against the dollar late on Friday, remaining in weak territory amid an emerging market currency sell-off triggered by the recent devaluation of the Chinese yuan.
At 3.36pm the rand was at R12.9427 against the dollar from a previous close of R12.9368. It reached a weakest intraday level of R12.98 in the morning. Against the euro the rand was at R14.6077 from a previous close of R14.5426. Against the pound‚ the rand was at R20.3092 from R20.2982. The euro was at $1.1286 from $1.1241 previously.
Market concerns about a slowdown in the Chinese economy continued to pressurise emerging market currencies. The preliminary Caixin Chinese manufacturing purchasing managers index, a gauge of nationwide manufacturing activity, fell to 47.1 in August from a final reading of 47.8 in July. A figure under 50 indicates contraction in the sector.
Barclays Research analysts said they saw the rand weakening to R13.50/$ by year-end and R13.60/$ by the end of the first quarter of 2016.
