On Tuesday morning, the rand hit a new record low against the dollar amid concerns about South Africa's relationship with Russia.By mid-morning, the local currency regained some of its losses to trade around R19.80. It was last trading at R24.45 to the pound and R21.15 to the euro.
On Monday, government said it would provide diplomatic immunity to attendees of an upcoming BRICS ministerial meeting in Cape Town this week and the summit in Johannesburg later this year. for war crimes related to the alleged abduction of children from Ukraine. South Africa is a signatory to the Rome Statute of the ICC and is obliged to act on the arrest order.and had nothing to do with Putin.
Nolan Wapenaar, co-chief investment officer of Anchor Capital, says these concerns added pressure on the rand.Putin is like a recent bruise for the economy. Every time you rub a bruise, it hurts just a little bit more. That is clearly a part of the rand’s woes.