The rand weakened sharply in late afternoon trade on Thursday in near-panic trade as the local currency experienced delayed reaction to Donald Trump’s election as US president. Renewed concerns about the possible adverse consequences of Trump’s policies hit emerging markets one day after his victory in the US presidential election. Trump’s protectionist policies are expected to have a negative impact on emerging markets, with most emerging currencies trending weaker on Thursday. At 4.07pm the rand was at R13.8491 to the dollar from Wednesday’s R13.4452. It weakened more than 3% to R13.9743 in intraday trade. The local currency was at R15.0839 to the euro from R14.6586 and at R17.2328 to the pound from R16.6736. The euro was at $1.0891‚ from $1.0909. The rand was then at the same level it initially weakened to after the Trump victory was announced on Wednesday morning. It thereafter firmed to R13.45 to the dollar in intraday trade as a degree of calm returned to the markets. Continue...
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