Prognosis
South Africa’s Virus-Spurred Pariah Status Takes a Toll on Rand
- Growing number of European countries impose travel curbs
- Rand drops as much as 2.4% and is worst performer in EM
This article is for subscribers only.
The identification of a fresh Covid-19 strain in South Africa could not have come at a worse time for the rand.
Already reeling from concerns about Federal Reserve policy and a general risk-off mood because of emerging market politics, the currency is now on track for the biggest weekly drop for five months. It slid as much as 2.4% to the weakest level against the dollar since October 2020 on Friday.