Governor Lesetja Kganyago has said that SA’s central bank will not react to the sharp sell-off in the rand following Donald Trump’s election victory as this was a one-off event.
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Speaking at a forum yesterday, Kyanyago said:
"We do not react to an event. To the extent that this is a once-off event, it has no impact on rates trajectory."
The JSE also struggled in the wake of Trump's win. Yesterday, the FTSE/JSE All Share Index (Alsi) was down sharply in early morning trade, though it regained some ground as the day progressed.
South Africa was not alone in its trading woes, as many emerging market currencies took a knock in the wake of the election results. The Mexican peso tumbled the most in eight years to its weakest level on record, and the Turkish lira sank to a record low.