The rand/dollar exchange rate has depreciated by 4,96 per cent since the beginning of this year, but has appreciated by 7,25 per cent against the euro and hence, on a trade weighted basis the rand had been relatively stable.
The volatility in the foreign currency exchange markets is likely to persist and will be amplified should the timing of the so-called lift-off differ from market expectations, or a Grexit occur. The emerging market economies are likely to be affected significantly by these developments and countries with weak macro-economic fundamentals and indicators in particular are likely to be most vulnerable.