Rand set for longest streak of losses in 2 years

The rand is missing out on the emerging-market rebound.

While MSCI’s gauge for developing-nation currencies is up 0.2%, with 17 out of 24 major peers gaining against the dollar, the South African currency is poised for an eighth day of losses – the longest streak in two years.

Mining production data released Thursday added to the rand-specific risk-off sentiment after it showed an eighth consecutive drop in June.

Investors are also fretting about higher taxes to pay for a planned national health service, and lack of progress in rescuing Eskom Holdings SOC Ltd., the ailing state-owned electricity company.

“The amount of risk the rand is carrying at the moment, people may not be willing to carry it over the extended weekend,” said Simon Harvey, a London-based FX analyst at Monex Europe Ltd. South African markets will be closed for a national holiday on Friday.

The rand was down 0.4% to 15.1121 per dollar by 12:05 p.m. in Johannesburg, its weakest level on a closing basis since Sept. 2018.

The rand is also the most volatile currency in the world, with the one-week implied volatility climbing a fourth day.

Read: Rand shoots past R15 to the dollar

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Rand set for longest streak of losses in 2 years