The rand stabilised on Friday morning, after another testing week for emerging-market currencies. It was in slightly better shape on Friday, but poised to finish the week weaker as it felt the full force of a strong dollar. Indonesia’s central bank raised interest rates by 25 basis points on Thursday to counter the effects of a stronger dollar on its currency, the rupiah, joining Turkey and Argentina, which recently tightened their monetary policies. The South African Reserve Bank is expected to hold fire on rates when its monetary policy committee meets next week, but is likely to flag the global developments and their possible effect on the inflation outlook. The rand has weakened materially since the last monetary policy committee meeting in March, where the committee cut rates by 25 basis points and uncharacteristically labelled the rand "overvalued". Capital Economics senior emerging markets economist William Jackson said in an e-mailed note to clients that the current sell-off...
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