The rand fell on Monday to its lowest level against the dollar in almost a month as traders braced for more volatility after British Prime Minister Theresa May called off a parliamentary vote on her Brexit strategy, setting the scene for more turmoil in global markets. A messy Brexit could hamper economic growth in the UK and the rest of the EU, which is still SA’s biggest trading partner, despite the rising importance of countries such as China and India. This could weigh on the rand and increase the likelihood of the Reserve Bank hiking interest rates. Violent protests in France, fear of a trade war between the US and China and poor economic data from Asia added to a sell-off of risky assets. Sentiment was also hit by news of the unexpected resignation of India’s central bank governor after a clash with the government. Implied one-week volatility in the rand against the dollar jumped above 20% to the highest since mid-September, according to Bloomberg data, which also showed that ...
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