The monetary unit of the largest economy on the African continent dropped lower than the 11 per dollar mark for the first time since October 2008. Ten-year bonds issued by the government of South Africa have climbed 32 basis points thus far this year.
"There's nothing magical about 11 rand per dollar, it's just key from a psychological point of view," currency strategist John Cairns with Rand Merchant Bank in Johannesburg told the news source on Thursday. "The rand's decline this year has already hit sentiment very hard."
Since the beginning of 2013, the rand has plunged roughly 23 percent against the greenback. The monetary unit dropped 1.6 percent on Thursday against the dollar, and it held on to those losses during the Friday trading session.
Finance Minister Pravin Gordhan is readying to present South Africa's national budget next month, according to Business Day Live. Concerns are growing amongst taxpayers about for spending of tax revenue.
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