At 1552 GMT, the rand traded 0.6% weaker at 15.1000 against the dollar, eroding gains made in the previous session. The central bank highlighted inflation risks, with Governor Lesetja Kganyago saying the bank stood ready to act if it saw them materialising.
On Wednesday, the focus returned to global events, chiefly U.S. jobs data to be released on Friday when investors will seek clues on the timing of Federal Reserve policy tightening.
"Growing concerns over rising inflationary pressures in the United States, rising commodity prices and slowing growth continue to drain risk sentiment, weighing on emerging market currencies," Lukman Otunuga, Senior Research Analyst, FXTM said.
Higher rates in developed countries often take capital away from higher-yielding but riskier emerging markets such as South Africa.
Anti-risk sentiment was also reinforced by a spike in oil prices that have hit multi-year highs on signs of tight energy supplies, especially after the OPEC+ group said it would increase output at only a gradual pace. [O/R]
Government bonds strengthened, with the yield on the 2030 paper falling 1.5 basis points to 9.500%.
Stocks followed global peers lower, with the Johannesburg All-Share index falling 0.86% and the Top-40 index down 0.99%.
Among the decliners were mining companies led by Anglo American Plc down 3.10%, with the resources index falling 1.68% on certain weaker commodity prices such as gold, silver and palladium. [GOL/]
"Given how the precious metal remains highly sensitive to rate hike expectations, there could be increased volatility through the non-farm payrolls data on Friday," Otunuga said.
(Reporting by Nqobile Dludla and Olivia Kumwenda-Mtambo; Editing by Krishna Chandra Eluri and Barbara Lewis)
