The sharp move on the pound saw markets in utter turmoil this morning, leading to the rand breaking above the R18.00 mark against the dollar. Further pressure has been placed on the euro, with markets remaining sceptical of a recovery in economic growth in the eurozone, but we have seen some recovery on the currency front, which is trading at .9660 this afternoon. The pound is trading at 1.0815 against the dollar and R19.47 against the rand after seeing session lows of 1.0086 and R18.44, respectively.
What has been a perfect storm hitting the EM space. With the current uncertainty and high volatility, we could see the rand continue to trade above the R18.00 handle and perhaps see weaker levels against the dollar. The dollar index is trading at 113.33, down from this morning, when we almost touched 114.
