The rand has again weakened against the US dollar as global investors return to developed markets.
Analysts say investors are re-positioning themselves this week ahead of key central bank meetings in the United States and the Euro zone.
Earlier, the local currency was trading at R13.23 to the US dollar.
Economist, Iraj Abedian says the rand is weaker due to risk-off sentiment, a stronger dollar, and expectations of higher US borrowing costs.
“Events in Turkey and a number of other emerging economies such as India have shown great vulnerability and exposure to rising interest rates in the US, primarily the rand is responding to the global foreign exchange market and in addition to that; domestically the political and economic trends are not turning positively fast enough and the latest GDP figures are also causing a bit of a dent in market expectations. So, it’s a combination of these factors that led to a rand weakness.”
