The rand suffered its biggest one-day drop against the dollar in nearly a decade on Friday after Britain chose to leave the EU in a move that jolted world markets.
With 100% of voting areas having now been counted‚ the “Leave” camp took almost 52% of the vote‚ an outcome that the markets had discounted just a few days before the referendum.
“Markets are also concerned about the contagion effect and (the) future of the EU. Is this the first move in a dismantling of the EU?” said IG SA senior market analyst Shaun Murison.
The rand took a hefty knock‚ dropping by about 8.78% to the dollar‚ the steepest one-day fall since the 2008 financial crisis.
As panic set in‚ the money flowed into safe-haven assets such as gold and the Japanese yen‚ which jumped significantly.
“The (UK) exit raised a lot questions over UK and euro growth and the impact it will have on global growth‚” Absa Wealth and Investment Management’s head of private clients asset management‚ Craig Pheiffer‚ said.
In a move that is likely to trigger concern about inflation‚ the rand has weakened to session lows of R15.67 to the dollar from R14.31.
But at 8.44am‚ the rand had clawed back some value and was at R15.3543 to the dollar from R14.4079 at the previous close.
It was at R17.0021 against the euro from R16.4118 previously‚ and at R21.0600 against the pound from R21.4504 previously.
The euro was at $1.1076‚ from $1.1390 previously. – Tiso Black Star Group Digital/BDlive
Rand under pressure as Britain votes to bow out of EU
With 100% of voting areas having now been counted‚ the “Leave” camp took almost 52% of the vote‚ an outcome that the markets had discounted just a few days before the referendum.
“Markets are also concerned about the contagion effect and (the) future of the EU. Is this the first move in a dismantling of the EU?” said IG SA senior market analyst Shaun Murison.
The rand took a hefty knock‚ dropping by about 8.78% to the dollar‚ the steepest one-day fall since the 2008 financial crisis.
As panic set in‚ the money flowed into safe-haven assets such as gold and the Japanese yen‚ which jumped significantly.
“The (UK) exit raised a lot questions over UK and euro growth and the impact it will have on global growth‚” Absa Wealth and Investment Management’s head of private clients asset management‚ Craig Pheiffer‚ said.
In a move that is likely to trigger concern about inflation‚ the rand has weakened to session lows of R15.67 to the dollar from R14.31.
But at 8.44am‚ the rand had clawed back some value and was at R15.3543 to the dollar from R14.4079 at the previous close.
It was at R17.0021 against the euro from R16.4118 previously‚ and at R21.0600 against the pound from R21.4504 previously.
The euro was at $1.1076‚ from $1.1390 previously. – Tiso Black Star Group Digital/BDlive
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