Shocks, such as a pandemic, or a war, usually make things difficult for emerging market currencies. The rand was an exception until recently, but over the past two weeks it has traded 7% weaker against the dollar. After Wednesday evening’s interest rate hike by the US Federal Reserve, it traded below R16 against the dollar again yesterday (closing at R16.04/$1). So what can we expect next?
* The Economics Minute is supported by the NUWU Business School.
