By Robert Brand and Xola Potelwa | From Bloomberg News

The rand plunged to its weakest level in 13 years, breaching 12 per dollar as emerging-market currencies tumbled after a report showed the U.S. economy added more jobs than expected in February.

The South African currency depreciated 2.1 percent to 12.0888 per dollar by 5:23 p.m. in Johannesburg, the weakest level since March 2002. Yields on benchmark rand bonds due December 2026 soared 27 basis points to 8 percent, a nine-week high on a closing basis.

U.S. employers added 295,000 jobs in February, compared with 239,000 in January, driving the unemployment rate to its lowest in almost seven years, data from the country’s Labor Department on Friday showed. The improving labor market is fueling speculation the Federal Reserve is poised to start raising interest rates, a move that would draw capital to the dollar and away from emerging markets including Africa’s second- biggest economy.

“Emerging-market currencies are under severe selling pressure globally after the very strong U.S. job report,” Bernd Berg, a London-based strategist at Societe Generale SA, said by e-mail. “I expect the selloff in the rand to accelerate” and the currency may reach 12.20 within days, Berg said. Of the 24 currencies from developing nations tracked by Bloomberg, 17 weakened against the dollar.

Electricity shortages are adding pressure on South Africa’s current account and will probably fuel rand weakness for some time, Murat Toprak, a currency strategist at HSBC Holdings Plc, said by phone from London.

Grid Constrained

Eskom Holdings SOC Ltd., South Africa’s electricity utility that started rolling blackouts in November, said on Friday it expected the power grid to be constrained for the foreseeable future. The deficit on South Africa’s current account was 6 percent of gross domestic product in the third quarter. The data for the last three months of 2014 is due on March 17.

“Power outages are having a substantive impact on production and on sectors that are very important for the rand,” Toprak said. “Given the poor macro fundamentals of South Africa this is likely to continue. The momentum is there” for the rand to weaken, he said.