Here’s What’s Ailing the Rand

It’s more than negative sentiment toward developing nations

The rand weakened more than any other major currency last week, falling 3 percent against the dollar. Though it was a victim of souring sentiment toward developing nations, it’s hardly being helped by South Africa’s economy, which UBS Group AG forecasts will expand just 1.2 percent this year, lower than any of its peers and substantially below the average for emerging markets. That’s causing investors to bet that the chances of currency support through a hike in interest rates are slim.

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