Rand Drops Amid Speculation of Intervention to Calm Volatility
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The rand fell to a four-year low, set for its worst month since 2011, amid speculation the central bank may sell dollars to soothe volatility and as government officials tried to reassure investors.
Movements in the currency are “somewhat exaggerated,” the central bank’s Deputy Governor Daniel Mminele said in Pretoria yesterday. While the regulator is committed to a flexible exchange rate, it would be concerned by “abrupt and disorderly movements,” he said. The comments may point to intervention if daily moves “got out of hand,” said John Cairns, a currency strategist at Rand Merchant Bank.