* Rand drops 1.5 pct vs broadly stronger dollar
* Risk remains off on European debt concerns
* Bonds end weak but previous losses look overdone
JOHANNESBURG, Jan 5 (Reuters) – South Africa’s rand
hit a two-week low against the dollar on Thursday, dropping
through key levels and weakening along with other emerging
market currencies as investors cut back on risky assets.
The rand fell 1.5 percent to 8.2490 against the
dollar in the local session, its weakest since Dec. 22. Dealers
said the currency’s weakness was somewhat exaggerated by the
lack of players in the market.
“A relatively quiet day although a fairly wide range (with)
the rand broadly tracking risk sentiment as we saw a risk
selloff earlier this morning,” said Duncan Howes, a currency
trader at Absa Capital.
The rand got a brief lift on better-than expected employment
numbers out of the United States before concerns about Europe
overtook the market again.
“The euro remains under pressure with a stronger dollar so I
think the focus will definitely be on unemployment numbers
tomorrow (Friday) from the United States,” Howes said.
The rand might find it hard to weaken past 8.28, its
previous low, Howes said.
Government bonds were slightly weaker, with the yield on the
2015 bond edged up 1.5 basis points to 6.865 percent,
while the 2026 yield added 2.5 basis points to 8.66
percent.
(Reporting by Xola Potelwa)
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