Rand drops to its lowest since November

August 11, 2018 6:59 am Published by Leave your thoughts

JOHANNESBURG – The rand along with other emerging market currencies have continued to come under pressure with the local currency dropping to a low last seen in November.

Economists say a plunge in the Turkish lira has rocked global equities and emerging markets.

Turkey has come under pressure due to failed talks with the US while the trade war between the US is impacting on currencies.

The rand hit around 14.10 to the dollar yesterday.

There are fears of more turmoil which has sent investors scurrying for safety in assets like the yen and US Government bonds.

The lira fell as much as 14 percent against the dollar, chalking up its worst day since turkey’s financial crisis of 2001.

It came on the back of a deepening rift with the united states, worries about its own economy and lack of action from policymakers.

The currency is now down more than 36% this year, and 17% this month alone fanning worries about a full-blown economic crisis.

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