South Africa's rand dragged lower after China devalues currency

South Africa's rand fell sharply early on Tuesday along with fellow emerging market units after China devalued its currency to support a stuttering economy. "The effect on emerging market/high-yielding currencies was quite strong this morning," trader Warrick Butler of Standard Bank said in a note to clients. A move below the 12.80 support level was however unlikely, Warrick added, as negativity had already been priced into risky emerging market assets.