Rand will probably weaken further, but 'not heading for a crash' yet, say economists

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The rand and other emerging market currencies have taken a knock as the market is in risk-off mode. Photo: Getty
The rand and other emerging market currencies have taken a knock as the market is in risk-off mode. Photo: Getty
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The rand, which until recently was the top-performing emerging market currency, is in correction territory, having weakened to its lowest level since August.

The local unit started Monday at R14.71 to the greenback, before weakening about 0.88% to R14.81/$ by mid-morning. Last week the rand lost more than 3% to the dollar, the euro and pound, economists from the Bureau for Economic Research (BER) highlighted in a note.

This is happening against the backdrop of the market being in risk-off mode, which has benefitted the US dollar, but left emerging market currencies are on the back foot, according to André Cilliers, currency strategist at TreasuryONE.

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Rand - Dollar
15.24
+0.1%
Rand - Pound
20.58
+0.1%
Rand - Euro
17.22
+0.4%
Rand - Aus dollar
10.91
-0.0%
Rand - Yen
0.13
+0.1%
Gold
1,848.85
+0.3%
Silver
23.83
-0.7%
Palladium
2,205.16
+2.7%
Platinum
1,031.69
-0.2%
Brent Crude
86.27
-1.9%
Top 40
65,870
+0.3%
All Share
72,315
+0.2%
Resource 10
72,883
+1.9%
Industrial 25
89,867
-1.2%
Financial 15
14,799
+0.6%
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