Rand hits five-year low

By Drum Digital
27 January 2014

The rand hit a fresh five-year low on Monday as the currency came under sustained pressure.

The rand hit a fresh five-year low on Monday as the currency came under sustained pressure amid a worldwide flight from emerging markets.

The rand weakened to 11.25 against the dollar in morning trading, before regaining some ground against the greenback.

The rand, often seen as a bellwether for emerging market currencies, has been under pressure since the US Federal Reserve announced that it would trim back stimulus spending.

"The rand has now fallen by 25 percent against the dollar since last May," said Shilan Shah of Capital Economics.

While South Africa has been buffeted by the same wind that has hit other emerging markets, domestic mining strikes and the country's fiscal problems have also made themselves felt.

South Africa has been dubbed one of the "Fragile Five" emerging economies which are struggling under a large current account deficit. - Sapa

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