S.Africa rand extends losses vs dlr, tracks euro

JOHANNESBURG (Reuters) - South Africa's rand extended its losses against the dollar to more than 1.3 percent on Tuesday, hit by the euro's failure to hold recent gains against the greenback and also after a member of the ruling ANC national executive said he wanted lower interest rates.

At 0945 GMT the rand traded at 7.4350 against the dollar after earlier falling to 7.4450, compared to Monday's close at 7.3450.

"It looks like a combination. Ramaphosa's comments had an impact as did the euro," said Citi sub-Saharan specialist Leon Myburgh.

Bloomberg quoted Cyril Ramaphosa as saying the central bank should lower interest rates to weaken the rand and save jobs in the country by helping manufacturers.

The rand has gained nearly 30 percent against the dollar since the start of this year, prompting the central bank and the government to comment that it might be overvalued, undermining an economy struggling to get out of recession.

A Reuters poll of 28 analysts last week however showed the majority expected the Reserve Bank's monetary policy committee to keep the key repo at 7.0 percent. An unexpected cut could see the rand weaken.