For much of 2015, the rand was steady against its commodity and emerging market peers. However, by early 2016, it had depreciated meaningfully against these peers. By comparison, the JP Morgan Emerging Market Currency Index had depreciated 14,0 per cent from end-June 2015 to mid-January 2016, while the rand had declined 37 per cent against the US dollar!
As indicated, the rand was not the only currency to weaken during this period. Many emerging market and commodity currencies were on the back foot in reaction to poor economic data in China. In addition, market expectations for the US Federal Open Market Committee to increase its interest rate at the December meeting had risen sharply.