October 16, 2021

S.Africa’s rand, stocks fall on strong dollar, drop in commodity prices

South African Rand coins are seen in this photo illustration, file. REUTERS/Mike Hutchings/File Photo

JOHANNESBURG, Sept 17 (Reuters) – South Africa’s rand weakened on Friday, reversing some early gains and was set to close the week with an overall loss of almost 3.8% as the U.S. dollar rose and weak domestic economic data weighed on sentiment.

At 1610 GMT the rand traded at 14.7400 against the dollar, 1.03% weaker than its previous close.

After three weeks of strong gains, the rand has reversed direction since Tuesday, buffeted by poor domestic retail data, a retreat in commodity prices and a recommendation from investment bank JPMorgan to sell the currency.

The dollar climbed to a three-week peak on Friday, continuing to be boosted by strong U.S. retail sales data released on Thursday, reviving fears that a Fed tapering might be close. This has led to fall in riskier…

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