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The rand has found some short term reprieve over the last few days, although appears to remain on a weakening trajectory in the medium to long term.
While domestic catalysts including weak GDP, a rate cut and a widening current account deficit have contributed to the local currency softening this year, the deprecation has followed risk off sentiment which has seen emerging market asset classes mostly under pressure as well. External narratives which have contributed to the moves include: diminishing carry trade opportunities as the US, European and British central banks adopt a more hawkish stance on monetary policy and trade war tensions which continue to threaten the state of global economic growth.
The below graph illustrates the currency performances of the dollar against BRICS nations (Brazil, Russia, India, China and South Africa) for both the Quarter and Half Year ending 30 June 2018.