The South African rand slumped on Monday as investor concerns mounted over a power crisis that prompted President Cyril Ramaphosa to cancel a trip to the World Economic Forum in Davos.
The struggling state power utility last week ramped up power cuts to their worst-ever level, meaning most South Africans are without power for at least six hours a day and often more.
The South African rand traded at 17.0775 against the dollar at 1230 GMT, about 1.4% weaker than its previous close. It earlier in the day hit its weakest since Dec. 13. "What we're seeing right now is potentially a realisation of the ramifications of where we are with Eskom and also a bit of unwinding in the USD-ZAR shorts that were on," said Quinten Bertenshaw, executive director of ETM Analytics.
Recent strengthening in the rand had been a"dollar play", he said, adding,"we haven't broken any key technical levels as yet. I think the first big level that I would worry about that would signal a reversal for me, would be closer to the 17.20 mark."
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