Rand’s slump puts paid to interest rate-cut hopes
While the Bank does not target a particular value for the rand, it is one of the major determinants of SA's inflation outlook
The rand’s slump to the weakest since early January against the US dollar after a fresh bout of emerging market volatility sparked by Turkey has probably put paid to any chances of an interest rate cut by the Reserve Bank. SA’s currency slumped 1.24% to 14.6021/$ shortly after 5pm on Wednesday, its weakest level since January 4. It dropped as much as 1.8% against the British pound to levels not seen since October 2018, before being 1.3% weaker at R19.2882/£. Against the euro, it lost 1% to R16.4177/€. PODCAST: Listen to more commentary on the topic. Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Casts | Player.fm Options trading signals that the currency, which often overshoots in times of general weakness in emerging markets due to the relative ease in entering and exiting the SA market, is set for more wild swings and further weakness against its counterparts in developed markets. While the Bank does not target a particular value for the rand, it is one of the major determ...