JOHANNESBURG (Reuters) – South Africa’s rand fell early on Thursday to its lowest this year as a dispute within in the ruling African National Congress over the central bank weakened demand.
At 0800 GMT, the rand was 0.15% weaker at 14.8850 per dollar compared with an overnight close of 14.8600. It tumbled to a session low of 14.9625, its weakest since October, before settling near 14.80.
The currency has been hurt by the ANC’s internal squabble over whether the central bank should do more to promote jobs and growth [nL8N23C1NR]. That exacerbated the damage done by data showing the economy shrank by 3.2% in the first quarter.
Bonds opened weaker, with the yield on the benchmark 10-year issue up 2.5 basis points to 8.475%.
