The rand retreated the most among emerging-market peers, halting the longest winning streak in almost a year, as the currency climbed to the strongest level in three months prompted demand for dollars.
The rand swung between gains and losses as a crisis in Ukraine damped investor appetite for riskier assets and before the release of data that may show South African producer inflation accelerated last month.
South Africa’s rand weakened for a fourth day as investors pulled out of developing-nation markets after the devaluation of Argentina’s peso and concern that Chinese growth is slowing. Bond yields rose to a two-year high.
The dollar rose against 13 of its 16 most-traded peers as a U.S. political stalemate persisted and President Barack Obama warned the nation faces a “very deep recession” if Congress doesn’t raise the debt limit, fueling haven demand.