OWN CORRESPONDENT, Johannesburg | Friday 6.30pm
A FAST-falling rand wore down market on Friday afternoon as the currency fell to its lowest level in 17-months.
Markets looked to the falling currency, paying little attention to a stellar gold price that rose $6 overnight.
The all gold index ended the day one point lower at 1258, with muted gains in major gold producers. Avgold rose 20 cents to R4,65 rand, while Anglogold lost 400 cents to R341.
Dealers said the pressure on the rand is coming from speculation that Finance Minister Trevor Manuel will substantially relax exchange contols in his Budget speech on February 23.
Traders said the move, which saw the rand slide from R6,32 early in the session to R6,40 at one point, was exaggerated by a thin market ahead of the weekend. But it still took the currency to its lowest level since September 1, 1998. The weak rand hit at bonds, pushing the R150 to a worst level of 12,99%. Japanese markets were closed due to a public holiday, but Hong Kong’s Hang Seng index leapt 807 points on Friday.