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The rand slipped more than 1% against the dollar after worse-than-expected December manufacturing data on Thursday.
The rand was trading at R7.2840/$ in afternoon trade, down by 1.01% compared to its close of R7.2110/$ on Wednesday.
It fell to a session low of R7.2870/$ as analysts said the South African Reserve Bank would likely leave monetary policy accommodative to help support the manufacturing sector.
It was also tracking a softer euro.
Although the rand retraced some of its losses, a currency dealer pointed to an initial target of R7.30/$, with R7.40/$ mooted for the unit.
The euro was bid at $1.3622 from $1.3719 before.
"It looks like the euro has fallen out of bed, with the rand wobbly as a result. It should be weaker than current levels. Exporters will target bids of R7.30 (against the dollar) and if we break through that level, R7.40 is on," the dealer said.
In its morning report, RMB said the dip to R7.17/$ on Wednesday did not necessarily signal a rand recovery but mostly dollar weakness.
"Scope for rand gains has been opened up by market perceptions that the SA Reserve Bank has eased off purchases, yet the more the rand gains, the more fears will grow that they'll return," it said.
RMB added that the global markets were in major flux with a Chinese rate hike on Wednesday, a US Federal Reserve hike by year-end fully priced for the first time, three Fed voting members saying that they don't expect a third round of quantitative easing and a major sell-off in US treasuries.
There was also growing evidence that investors were switching out of emerging-market equities.
However, emerging market currencies and equities were holding up well and the JSE was still expected to hit a new all-time record high, RMB said.
The rand was trading at R7.2840/$ in afternoon trade, down by 1.01% compared to its close of R7.2110/$ on Wednesday.
It fell to a session low of R7.2870/$ as analysts said the South African Reserve Bank would likely leave monetary policy accommodative to help support the manufacturing sector.
It was also tracking a softer euro.
Although the rand retraced some of its losses, a currency dealer pointed to an initial target of R7.30/$, with R7.40/$ mooted for the unit.
The euro was bid at $1.3622 from $1.3719 before.
"It looks like the euro has fallen out of bed, with the rand wobbly as a result. It should be weaker than current levels. Exporters will target bids of R7.30 (against the dollar) and if we break through that level, R7.40 is on," the dealer said.
In its morning report, RMB said the dip to R7.17/$ on Wednesday did not necessarily signal a rand recovery but mostly dollar weakness.
"Scope for rand gains has been opened up by market perceptions that the SA Reserve Bank has eased off purchases, yet the more the rand gains, the more fears will grow that they'll return," it said.
RMB added that the global markets were in major flux with a Chinese rate hike on Wednesday, a US Federal Reserve hike by year-end fully priced for the first time, three Fed voting members saying that they don't expect a third round of quantitative easing and a major sell-off in US treasuries.
There was also growing evidence that investors were switching out of emerging-market equities.
However, emerging market currencies and equities were holding up well and the JSE was still expected to hit a new all-time record high, RMB said.
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