Rand bears the brunt of volatility after US and UK tighten interest rates
Local currency’s slump of more than 4% may complicate policymaking for the Reserve Bank
The rand lived up to its status as the barometer of sentiment towards riskier assets, leading losses among emerging markets and slumping more than 4% as investors struggle to digest the outcome of key central bank policy meetings this week.
The biggest one of them, the US Federal Reserve (Fed), on Wednesday served up a 50 basis point (bps) increase in the benchmark rate as the central bank battles inflation at more than 40-year highs. An initial relief rally, which indicated some investors had been expecting a more aggressive hike of 75 bps, boosted stocks and pushed the rand up more than 2% on Wednesday...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.