JOHANNESBURG: South Africa's rand retreated on Wednesday as the dollar rose, lifted by data that fuelled expectations the Federal Reserve will raise US interest rates next month.
Stocks ended little changed. Anglo American hit its lowest level in more than 15 years after a brokerage house cut its rating on the stock.
Yields on government bonds inched up. The benchmark bond due in 2026 added 0.5 basis points to 8.465 percent.
By 1550 GMT, the rand had slipped 0.8 percent to 14.1500 per dollar, dipping to a one-week low as positive US data pushed the dollar to an eight-month high, scuttling a brief rally by the rand. "Moves on the pair have been driven by the US data.
There wasn't anything today to detract from the fact that the market is still pricing in a high probability of the Fed hiking in three weeks time," ETM Analytics economist Ricardo Da Camara said. Manufacturing output rose more than expected in the United States in October and a gauge of US business investment plans also surged, helping the dollar index rise almost half a percent.
Local data due later in the week is likely to add pressure on the currency, analysts said, with the November producer inflation due on Thursday expected to show an uptick in prices.
"A higher print compared to September will again highlight the topside inflationary pressures which are likely to seep through to the CPI over the coming months," Da Camara said.
The JSE Top-40 stock index inched up 0.2 percent at 46,672 and the broader All-share index edged up 0.19 percent at 51,914. Anglo American, which is also listed in the London, was a big loser, slumping 7.07 percent to 89.75 rand, a level last seen in 2000.
HSBC analysts downgraded their rating on the Anglo American's stock to "reduce" from "hold", saying cost and dividend cuts might not stop the company from burning cash.
Other movers on the bourse included bank and asset manger Investec, up 3.05 percent at 120.36 rand, and luxury goods maker Richemont, rising 2.24 percent at 105.10 rand.
More than 261 million shares changed hands, compared with last year's daily average of 183 million shares.
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