World Economy

Rand at Risk

Rand at RiskRand at Risk

South Africa’s rand steadied against the dollar on Wednesday after touching fresh 14-year lows the previous day, but traders expected weak local economic fundamentals and concerns about China’s growth to keep the currency under pressure, Reuters reported. The local currency was 0.1% firmer at 12.88 per dollar compared with Tuesday’s close. The unit had tumbled to 12.97 on Tuesday, a level last reached in Dec. 2001 amid an emerging market sell-off partly prompted by investors’ expectations that US interest rates could rise in September. Investors are currently seeing little appeal in South African assets as the economy grapples with chronic electricity shortages and the threat of wage strikes in the gold mining sector.