Johannesburg - The rand slid 2.6 percent to a six-week low on Friday as global investors hammered emerging market currencies, while bonds extended a retreat on concern interest rates would head upwards this year.
Dramatic gains in prices for gold and platinum, along with the sliding dollar, prevented the rand from weakening further, but the unit was probably set for more losses amid concern over South Africa's widening current account deficit, dealers said.
"The outlook for emerging markets doesn't look good at this stage and it seems those that are running big current account deficits are hardest hit," said ETM analyst George Glynos.
"The risk at the moment favours further rand weakness - I would still be a buyer of dollars through . I'd look for a test of this year's low of R6.38 a dollar, reached on March 22. It's the next big technical resistance level."
The rand plunged from R6.08 a dollar at the start of the session to R6.24 a dollar - its weakest level since March 30. It also depreciated by 3 percent against the euro. At 5pm it was trading at R6.2275 from R6.0427 on Thursday.
Government bonds were weaker. The R153 gave up 7 basis points to 7.37 percent while the R157 slipped 6.5 basis points to 7.595 percent.
Platinum set a new record peak of $1 333 an ounce on a positive supply-demand outlook while gold matched a 26-year peak of $726 an ounce.