Rand extends losses for 3rd week to lowest amid Middle East conflict
The rand extended losses for a third consecutive week to its lowest since early December as Israel and the United States (US) continue their war on Iran.
The sharp decline comes ahead of the central bank’s interest rate decision later this week.
Emerging market assets like the local currency are sensitive to global uncertainty, and during times of heightened risk, investors tend to move away from these assets toward safer havens.
The sharp decline in precious metals prices and sell-off of shares and bonds by foreigners last week, also had a negative effect on the rand exchange rate.
It is currently trading at R 17.23 to the US dollar.