Having traded in a relatively narrow trading range for much of the first half of this year, the exchange rate reacted to the global risk aversion, and between 11 May and the middle of June it depreciated from R6,10 to the US dollar to around R6.80.
Subsequently, concerns relating to the widening current account deficit on the balance of payments in excess of 6 per cent of GDP caused the exchange rate to depreciate further. At one stage the exchange rate had depreciated to around R7,90 to the US dollar in early October, but more recently it has been trading at levels of around R7,20.