The rand slipped to a fresh five-month trough on Monday morning, as the dollar’s extended strength looks likely to leave central banks in a corner.The dollar’s moves have been fast and fierce, leaving currencies in both emerging and developed markets gasping for air.The rand was within striking distance of R13/$, from R11.50 barely three months ago, demonstrating the destabilising effect of the dollar.SA’s Reserve Bank is widely expected to keep interest rates on hold when its monetary policy committee ends its scheduled meeting on Thursday, but markets will closely monitor its language to get clues on its policy outlook.It was only a few weeks ago that some economists and analysts were predicting a further 25-basis-point cut in rates, before global developments flipped this possibility on its head."The US dollar is a barometer for the changing global liquidity environment. A stronger dollar is a reflection of tighter global financial conditions, which is not conducive for risk asse...
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