The rand fell on Friday to the lowest point against the United States dollar since January 2004, a day after the South African government announced a multi-year record deficit for the country’s current account.
In European trade in London, the rand fell as low as $0,1328 — a level last seen on January 16 2004. By early afternoon in London, it stood at $0,1331.
South Africa’s Reserve Bank said on Thursday that during the first quarter the deficit on the current account of the balance of payments widened to 6,4% of gross domestic product — the highest deficit ratio in 24 years.
The current account is the widest measure of a country’s day-to-day trading relations with its peers, tallying movements in goods and services, the flow of investment returns and one-way payments such as foreign aid. — AFP