If the South African currency, the rand, has limited its decline Thursday, she had literally collapsed the previous day against the euro and the dollar. She approached the levels it had achieved more for over a decade.
Factor: fear of a global economic recession.
Thursday around 14H00 GMT, the rand against the dollar recovered to 10.38 rand to the dollar, and fell against the euro, to 14.05 rand per euro.( Finance Information City )
The rand had plunged 18% against the dollar Wednesday, to finish in the evening at 10.82 rand to the dollar, its largest daily fall since 1994.Against the euro, the currency of South Africa had fallen by 11% Wednesday, ending at 13.95 rand per euro, after touching the day during a low absolute opposite to the European currency to 14.5035 rand against a euro.
According to analysts, this fall is linked to growing concerns about global economic prospects, causing the price of raw materials on the decline. However, gold and platinum are the primary sources of income for export to South Africa.
While a weak rand will help boost export industries, but could lead to grim prospects for inflation and interest rates ..
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