South Africa woke up to a weaker rand following a public holiday yesterday in the country. The local currency traded above R14 to the US dollar after the Federal Reserve tilted toward tightening policy, aiding the greenback.
Fed Chairman Jerome Powell said that officials would begin talks on tapering massive asset purchases while penciling in two rate hikes by the end of 2023, reports Bloomberg.
The downward move follows a 13% advance in emerging market currencies from post-pandemic lows to a record high, with the rand being this year’s best performer.
The rise in the dollar also spelled bad news for commodities priced in currencies, with oil, gold, and copper all losing ground. And in Asia, stocks were down as investors continued to digest the Fed’s hawkish policy decision.
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