Rand crashes most since March as Fed and Covid-19 bring rally to abrupt end

The rand’s eight-day rally came to an abrupt end on Thursday, with the currency tumbling more than 3% in a move that demonstrates its vulnerability to change in sentiment globally.

SA’s currency, traditionally among the most volatile among emerging markets due to SA’s deep and widely traded market, dropped the most since March 18, caught up in a wave of selling that came despite the US Federal Reserve delivering a relatively dovish message the previous night, with its chair, Jay Powell saying he wasn’t even thinking about raising interest rates.