Rand loses ground as Turkish lira’s rally fades in volatile trade
The Turkish currency gained ground earlier following Recep Tayyip Erdogan’s re-election, but analysts warn that emerging-market sentiment remains fluid
The rand was weaker against global major currencies on Monday afternoon after the Turkish lira lost the initial gains made following the re-election of Recep Tayyip Erdogan, for another five-year term, as president of Turkey.Erdogan got nearly 53% of the vote with almost all votes counted, with his closest rival coming in at 31%, leading to an initial 3% rally in the country’s currency.The lira was at 4.6934 to the dollar from 4.6342 earlier on Monday afternoon, as analysts expressed concern the lira might hit the five to the dollar level should Erdogan initiate further market-unfriendly policies. That would be negative for emerging-market currencies, including the rand."We still needed to see whether Erdogan will pursue his stance on having more control of monetary policy in Turkey," TreasuryOne analyst Andre Botha said. Should this be the case, the earlier positive sentiment toward emerging-market currencies could turn around swiftly.The rand has been caught up in the crossfire of...
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