Rand at lowest level in four years as pandemonium hits markets

JOHANNESBURG – The rand tumbled to the lowest level in four years yesterday and briefly touched R17 to the dollar before recovering to R15.9466 by 5pm as the global oil-price war sparked pandemonium in world markets.

The oil price collapsed more than 30percent yesterday to a near 20-year low as tensions mounted on Russia’s falling out with Opec.

The rand also took a drubbing on the impact of the coronavirus (Covid-19) outbreak on the global economy, the reintroduction of Eskom’s power cuts, and the downward revision of South Africa’s growth forecast to 0.4percent from 0.7percent by ratings agency Moody’s.

TreasuryONE senior dealer Wichard Cilliers said the rand was not the only emerging market currency to be put under pressure by the oil-price war.

“The rand, which closed at R15.65 on Friday, has traded up near R16.96 levels in illiquid markets as panic set in and stop loss orders were triggered in emerging markets,” Cilliers said.