August 10, 2018 / 4:32 PM / 10 months ago

UPDATE 1-South Africa's rand weakens nearly 3 pct as emerging market currencies slip

(Updates prices, add stock indexes)

JOHANNESBURG, Aug 10 (Reuters) - South Africa’s rand slipped nearly 3 percent on Friday, slumping to its weakest level in more than 8 months in line with emerging market assets as global trade tension sparked selling pressure.

At 1352 GMT, the rand traded 2.7 percent weaker at 14.0700 per dollar, a level last seen on Nov. 27 last year.

“The rand and other EM currencies on the back foot as sentiment sours,” Rand Merchant Bank analysts said in a note, adding that this was due to “geopolitical concerns and the negative impact of the U.S.-China trade spat on global growth.”

Analysts said Turkey’s lira and the Russian rouble were hit hardest in the sell-off.

Turkey’s lira hit a new record low against the U.S. dollar in early trade on Friday, as concerns over a widening rift with the United States persisted after a Turkish delegation returned from talks in Washington with no apparent solutions to the crisis.

The rouble slid to two-year lows after Washington said it would impose fresh sanctions on Moscow.

In fixed income, the yield for South Africa’s benchmark 2026 bond was up 5 basis points to 8.860 percent.

On the bourse, the blue-chip JSE Top-40 index was off 0.07 percent while the broader All-share index gave up 0.14 percent. (Reporting by Olivia Kumwenda-Mtambo and Tiisetso Motsoeneng; Editing by Catherine Evans and Pritha Sarkar)

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