Johannesburg - The rand weakened on Wednesday as the dollar was boosted by bumper US private sector jobs numbers that raised already high expectations of a US interest rate hike next week.
Local data showing business confidence declined in February also weighed on sentiment.
At 5pm, the rand was bid at R13.0755 to the dollar, 9.35c softer than at the same time on Tuesday.
Investors have also retreated to the sidelines before tomorrow’s US jobs data, which may offer more clues as to the pace of monetary tightening by the Federal Reserve.
Government bonds also weakened, and the yield for the benchmark instrument due in 2026 climbed.
Meanwhile, gold prices hit a five-week low yesterday as the dollar gathered strength on the prospect of a US rate hike.