The rand extended the worst decline among emerging-market peers as data showed South Africa’s economy had slipped into a recession for the first time since 2009. Stocks and bonds also fell.
The rand weakened more than 3% after data showed gross domestic product unexpectedly contracted in the second quarter, raising the nation’s risk profile at a time when emerging-market assets are under pressure from a rising dollar and global trade tensions. It also increases the chance of a credit downgrade by Moody’s Investors Service, which would plunge the country’s local-currency debt into junk status.
