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 African bonds rose, extending the biggest weekly gain since September, as lower rand volatility lured investors to the nation’s debt. The currency fell after a worse-than-forecast U.S. jobs report.
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 rand’s slump to a five-year low is souring investor confidence toward South Africa, complicating Finance Minister Pravin Gordhan’s efforts to cut the fiscal deficit as government borrowing costs rise.