Johannesburg - South Africa's rand was on the back foot early on Thursday as emerging market currencies were pushed lower by a global bond rout triggered by worries over slow economic growth.
Domestic issues also pressured the currency, with consumer confidence slumping in the first quarter of 2015 and power utility Eskom continuing with nationwide electricity cuts.
At 06h30 the rand had softened 0.34 percent to 12.0530 per dollar, edging towards a two-week low beyond 12.10, having touched 11.91/$ in the previous session.
“Technically the rand is very messy,” said Warrick Butler of Standard Bank. “US data still dictates and yesterday's lower than expected ADP payroll number was the cause behind the rand heading to 11.91-ish,” the currency trader added.
Figures on Wednesday showed US private sector employers in April hired the fewest workers in more than a year, raising a red flag for nonfarm payrolls due on Friday.
Rising global oil prices, which hit a 2015 peak of $69.63, saw a global government bond sell-off intensify, with South Africa's inflation outlook set to deteriorate further.
Yields on government bonds rose, with the benchmark issue due in 2026 adding 6 basis points to 8.2 percent.
Reuters