The rand took a hit on Monday, breaking through the R19/$ level and trading around its weakest level in a month.The latest bout of weakness is not driven by South African factors – instead, fear and uncertainty have gripped the market, which means investors are dumping riskier assets for the safety of the US dollar, says Schalk Louw, portfolio manager and strategist at PSG Wealth Old Oak.
Data on Friday showed that US producer inflation grew by more than expected in July, as the cost of services rebounded at their fastest pace in nearly a year. A string of weak Chinese economic data has also unnerved the market, with a crisis at the Chinese property giant Country Garden compounding anxiety. The company has some 1.15 trillion yuan in debt, but missed bond payments earlier this month and has warned of large losses amid a slowdown in the local property market.
This has triggered concerns about potential corporate collapses in China in global markets. Usually, the rand bears the brunt of the"risk off" sentiment caused by these concerns because it is one of the most liquid emergency market currencies and can easily be sold off, says Louw. The rand is among the top 20 most traded currencies in the world.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:
Sverige Senaste nytt, Sverige Rubriker
Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.
Value of Global Fintech Industry expected to reach R19 trillion by 2030 | City PressIn the past decade, fintechs have attracted more than $500 billion in funding. Since 2019, they have received roughly 20% of global venture capital outlays in subsegments such as cryptocurrency and its supporting technologies.
Källa: City_Press - 🏆 7. / 72 Läs mer »
Electricity minister defends Eskom's R3bn-a-month diesel habit | BusinessElectricity Minister Kgosientso Ramokgopa has defended Eskom's R12.4 billion diesel spend over the past four months, saying fuel needed to be burned to protect SA's economy. | News24_Business
Källa: News24 - 🏆 4. / 80 Läs mer »
FTX founder Sam Bankman-Fried jailed after bail revoked | BusinessA US federal judge on Friday ordered FTX founder Sam Bankman-Fried back to prison less than two months before his trial on fraud charges, revoking the disgraced cryptocurrency tycoon's bail over alleged attempts to tamper with witnesses.
Källa: News24 - 🏆 4. / 80 Läs mer »
IEA raises world oil demand forecast in 2023 towards all-time high | BusinessThe International Energy Agency said Friday it had revised upwards its forecast for global oil demand growth in 2023 as demand is 'scaling record highs'. | News24_Business
Källa: News24 - 🏆 4. / 80 Läs mer »
Inside Labour | Zama zamas are the product of gross exploitation | BusinessUnlike the pickers who raid the dustbins of suburbia, zama zamas constantly have to put their lives on the line in conditions that are barely imaginable, writes Terry Bell. | News24_Business
Källa: News24 - 🏆 4. / 80 Läs mer »
EXPLAINER | Here's how govt's new Energy One-Stop Shop works | BusinessGovernment last week launched the Energy One-Stop Shop, which an industry expert says signals to investors it is serious about dealing with the power crisis.
Källa: News24 - 🏆 4. / 80 Läs mer »