As much as our bodies need to occasionally detox, we also need a mental and spiritual detox, writes Melanie Verwoerd.
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The Turkish lira fell after President Recep Tayyip Erdogan’s ruling party looked set to lose control of key cities in a vote on Sunday.
The rand has continued to strengthen on the back of lower-than-expected US retail sales as well as a firmer Turkish lira, firming to a high of R14.28 to the greenback on Tuesday morning.
The rand has been taking its cue from the movements of the Turkish lira in recent days, as SA's fellow emerging markets battle economic difficulties.
Turkey’s consumer inflation has accelerated more than expected last month as a tanking currency boosted prices.
South Africa has been one of the emerging markets worst affected by Turkey’s economic slump, according to a new report by the global ratings agency.
Emerging-market assets may be headed for more tumult as the volatility that gripped nations from Turkey to South Africa and Russia shows few signs of ebbing.
Analysts say the period of sharp volatility for the local currency is likely to continue, with both local and international factors playing a role.
Analysts agree that an easy fix would be to raise interest rates by as much as 10 percentage points, encouraging investors to put more money in Turkish banks. This is unlikely to happen given that Turkish President Tayyip Erdogan has called interest rates "evil."
Spain and Italy are leading losses, down around 1% each. Elsewhere, losses are hovering between 0.5% and 0.8%, as investors continue to digest last week's 25% fall in the currency.
The rand plunged against the dollar in early trade as it continued to be dragged lower by the Turkish lira and Russian rouble.
The rand joined a number of its emerging market peers in strengthening against the greenback on Monday morning.
The Turkish central bank on Thursday raised the benchmark interest rate from 17.75% to 24%, which caused the lira to strengthen.
The local currency has now firmed by almost 5% against the dollar from its midweek low a week ago, but analysts warn it is still in volatile territory.
Turkey’s central bank signaled higher interest rates are in the offing after inflation rose more than forecast in August and producer prices surged.
CEO of the Geneva Management Group, Dave Elzas told Fin24 that international investors get cold feet due to global markets often reacting by asset class or bracket.
Andre Botha, senior currency Dealer at TreasuryONE, said in a morning note that the rand was still taking its cue from risk-averse emerging market sentiment.
It is helping to boost the embattled rand.
The rand wasn't alone; the crash in the Turkish lira rapidly spread around the world.
Turkey is set for another week of financial-market turmoil: its face-off with the US shows no sign of abating as the policy making vacuum grows.
A 10% plummet also dragged down the rand, which breached R15 to the dollar before recovering somewhat.
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