Argentine Peso, South African Rand Suffer More Losses as EM Currency Crisis Continues

Although the Turkish Lira has been stable above its all-time lows over the past two days, the South African rand and Argentine peso have continued to decline as the emerging market currency crisis shows no signs of abating any time soon.

The South African rand plunged 3.3% against the dollar on Tuesday, hitting a 2-year low rate of 15.38 rand to the dollar. The last time the rand traded this low against the dollar was on June 29, 2016.

Weakness in the rand was mainly driven by a newly-released Q2 GDP figure, which showed South Africa’s economy contracting by 0.7% - a big decline when compared to analysts’ estimates of 0.6% growth.

The Argentine peso took on slightly bigger losses than the rand, trading down more than 4% today to 39.36 pesos per dollar, after Argentina’s Tax Authority reported lower revenues for the month of August (down almost 0.5B from the previous month of 293.89B).

Peso photo credit: 1