Cape Town/Washington – The rand fell over 2% on Thursday morning as the dollar was the chief beneficiary of the Federal Reserve’s first and only interest-rate hike of 2016, rallying to a 10-month high against the yen after officials signalled a steeper path for borrowing costs.
Asian stocks outside Japan also slipped with bonds. The greenback extended its advance against major and emerging-market peers, except for Australia’s dollar, which rose after stronger-than-expected job gains.
Japanese shares rose as the yen fell, while equities in Australia, China and Singapore slid and crude oil held losses. Government debt tracked a rout in Treasuries. The Korean won sank as much as 1.1%, even as the central bank held rates, and China’s yuan fell the most in a month.