Rand Is Worst EM Performer Amid Cautious Risk Tone

Wider risk aversion has undermined the rand, prompting USD/ZAR to briefly probe the territory above the 19.00 mark. The South African currency underperforms all its peers from the EM FX space amid familiar broader-picture concerns. USD/ZAR now deals at 18.9810, over 2,000 pips on the session, with familiar technical levels still in play.

• Further negative headlines surrounding China's beleaguered property sector drew renewed attention to this key area of weakness in Asia's largest economy. The condition of China's economy has been closely monitored by rand traders.
• SAGBs have stabilised after their sharp sell-off this morning, stemming from a post-long weekend adjustment. South Africa's 10-year breakeven inflation rate has continued to climb and now sits at 7.23%, the highest point since Jun 2.