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The rand has weakened by around 2 percent so far today against a basket of major currencies, compared with Wednesday’s JSE closing price – mainly on the back of a strengthening dollar, but also due to higher than expected Consumer Price Inflation in July of 5,1%, and a tweet by U.S. President Donald Trump expressing his concern about land reforms and farm killings.
However, current rand weakness must also be seen against the backdrop of dollar outflows from emerging markets, following a sell-off in the Turkish lira.
The rand is currently trading at R14,41 against the dollar and R16,66 against the euro. This compares with R11,50 against the dollar in February.
