Rand falls to six-year low against dollar

The rand fell to a six-year low against the dollar on Wednesday, losing about 60% of its value this year as it dipped as low as 11,07 to the greenback.

Much of the rand’s fall has come just since August, as foreign investors have moved away from emerging markets to minimise their risk amid global economic worries, said George Glynos, of Econometrix Treasury Management.

“The dollar is strengthening very rapidly against most currencies. It’s an issue of risk aversion in most emerging markets,” he said.

Falling commodities prices are also affecting the South African currency, due to expectations for reduced demand for metals, the country’s main export.

“Political developments recently have raised the risk profile of South Africa,” Glynos added, as the African National Congress faces new challenges from a planned breakaway group ahead of next year’s elections.—AFP