The Rand has slipped below the psychologically important level of 9.0 against the US Dollar as increasing negative sentiment towards the currency triggered stop-losses on the currency.
Today’s declines come after violent protests erupted in the Zamelda Township of Sasolburg, located about 43 miles south of the capital Johannesburg. The rioting has left two people dead marking another bloody chapter in the nation’s recent past. These riots follow the violent protests seen in the mining and farming sectors that marred most of 2012.
The latest bout of violence was sparked on Sunday by the revelation that plans to redraw the area’s municipal boundaries were released. The new plans would see Sasolburg fall under the jurisdiction of a neighbouring council. Residents took to the streets in protest at not being consulted of the plan and were worried over job opportunities.
As a result of the rioting the Rand lost over 1.6 percent to 9.0001/dollar, it’s weakest in over nine weeks. Its next support level is the 3-1/2 year low of 9.01 hit in November. Light liquidity conditions and global demand for dollars added to the rand’s woes, although the currency is unlikely to weaken further on Wednesday as other emerging market units had either stabilised or strengthened.
Rates correct as of 14:47pm
The South African Rand to Pound exchange rate is currently trading at 0.07019
The South African Rand to Euro exchange rate is currently trading at 0.0846
The South African Rand to US Dollar exchange rate is currently trading at 0.1114
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1056
The US Dollar to South African Rand exchange rate is currently trading at 8.9725
The Pound to South African Rand exchange rate is currently trading at 14.2393
The Euro to South African Rand exchange rate is currently trading at 11.9577
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