JSE opens flat as rand plummets on Turkish contagion
Trade is thin in local stocks as pressure on the Turkish government takes its toll on emerging markets and as the US proposes new sanctions on Russia
The JSE opened flat on Friday as the market eyed movements in the rand, which weakened sharply to just under R14 to the dollar following a spectacular crash in the Turkish lira. The rand weakened to R13.9823 against the dollar in early-morning trade, after starting the week at R13.3128, bringing losses for the year to 12%. A weaker rand normally supports rand hedge shares and miners on the JSE, but investors were clearly adopting a cautious stance in thin trade on a day that many traders are away for a long weekend after Thursday’s National Women’s Day. The lira tumbled more than 10% against the dollar, to reach a record low of 6.2513 lira to the greenback. It has weakened 54% so far this year. The lira has been under pressure for the past few months as Turkish president Recep Tayyip Erdogan tightened his grip on fiscal and monetary policies following an election victory. The latest setback for the Turkish currency came after Erdogan threatened "economic war" against the US after th...
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