The rand touches a new record low

THE RAND plummeted to a record low yesterday as global concerns about China’s economy added to investors’ worries about domestic political and economic strains before municipal elections later this year.

The rand fell more than 9 percent to R17.9950 against the dollar, by far its weakest level on record, on fears that China wants to weaken its currency aggressively and boost its export competitiveness.

At 5pm yesterday, the rand had recovered somewhat to R16.6376 to the greenback, 49.88c softer than at the same time on Friday. It was the weakest performer in a basket of 25 emerging market currencies.

The rand has been wobbly since President Jacob Zuma plunged Africa’s most industrialised economy into uncertainty in December by firing Finance Minister Nhlanhla Nene.