The trading week has started with a sharp rise in risk aversion as the meltdown of the Chinese stock market continued. Currencies of emerging economies suffered as a result, including the South African rand that has touched the all-time low during today’s trading session.
The Shanghai Stock Exchange Composite Index dipped as much as 8.5 percent, causing rout of shares all around the world. It was followed by the drop of riskier currencies, like the rand. The slump of the rand prompted the South African central bank to say that it may intervene in order to reduce volatility of the exchange rate.
USD/ZAR climbed from 12.9683 to 13.2254 as of 18:16 GMT today, touching the record high of 13.6847 intraday.
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