The rand extended losses on Friday afternoon, sliding as much as 3% to cross R14 to the dollar for the first time since late November, as the Turkish economic crisis shook global markets. The slide marked the biggest one-day drop for the local currency in more than a year and potentially closes the window to any relief in high fuel prices. What started out a fairly quiet week turned out to be bruising for the rand, which was sharply weaker not only against the dollar but also the euro and pound.
Local bonds were not spared either, with yield on the benchmark R186 bond spiking to 8.87% from 8.67%, signifying a drop in the value of bond prices. Investors were into the dollar because of its perceived safety, which was stronger against virtually every other currency. Turkey was the buzzword, after its lira plunged a record 18% against the dollar to new lows, dragging other emerging-market currencies along with it...
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