Emerging markets are performing relatively well, but the rand is not following. Normally as the rand is a very liquid EM currency and benefits from risk-on rallies, the only explanation for the underperformance is the current ongoing electricity crisis we are facing. We will need to keep an eye on this. If the risk-on rally in other emerging markets stalls, the rand could be in for further pain. As stated last week, the R16.80 to R17.40 range seems to be comfortable for the currency in the short term. Rand made a bright start to the day, trading below R17.00, but it was short-lived as we saw some profit-taking once again and lost ground to R17.16.
#FinancialMarkets #ZAR #Eskom #Loadshedding #ElectricityCrisis
