The rand was significantly weaker against major global currencies on Thursday afternoon, in line with most emerging markets, as a dollar rally weighed on global risk assets. The rand hit an intraday low of R13.5108 to the dollar, a 2% drop from Wednesday’s close, and 45c from Tuesday’s best level of R13.0797. The local currency weakened sharply late on Tuesday, when ANC President Cyril Ramaphosa announced the party had agreed constitutional changes to give effect to land expropriation where necessary. The dollar found support on Thursday from a bullish assessment of the US economy by the Federal Reserve on Wednesday night. The prospect of new tariffs by the US against China also supported the dollar. With the more hawkish tilt in the Fed’s tone currently being priced into the market, on a near-term basis the rand could move weaker towards R13.50/$, said Investec chief economist Annabel Bishop. Volatility should persist, and as the third quarter continues, the risk of a move towards ...
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