South Africa’s Rand Falls to 2-Year Low As Turkey Rout Spreads

South Africa’s rand plunged more than 10 percent to a 2-year low against the dollar early on Monday and government bonds weakened sharply as a renewed rout in the Turkish lira spread to other emerging markets.

The rand, which later recovered to trade down 1.6 percent against the U.S. unit by 1500 GMT, is one of the most deeply traded emerging market currencies, making it susceptible to swings in sentiment on global markets.

The magnitude of the rand’s slide came after three days of heavy losses and caught the South African Reserve Bank by surprise, but a deputy governor at the bank told Reuters that the regulator was “nowhere near” intervening to support the currency.

Highlighting South Africa’s narrower current account deficit and smaller stock of short-term external debt…

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