The JSE and the South African rand weren’t spared as the US Federal Reserve’s new outlook for interest rates boosted the dollar and sent shock waves through emerging markets.
By 12:50, the rand was trading down 2.82% at R14.15 against the dollar, while the JSE All Share and JSE Top 40 indices recuperated some of their earlier losses, trading down 0.32% and 0.31% respectively just before lunch time. Gold bled, losing 3.22% to last trade at $1 795.69 as the stronger dollar robbed it of its safe-haven status.
The possibility of higher interest rates in the US has the tendency to move capital away from emerging markets, negatively impacting local currencies and currency-based commodities.
