African governments are increasingly turning to unconventional borrowing strategies, as high global interest rates and volatile currencies keep many shut out of traditional dollar funding markets, according to Citigroup Inc.
Emerging-market currencies and stocks fell on concern the ceasefire between the US and Iran is on the brink of collapse, while a slump in South Korean shares also weighed on sentiment.
South African Reserve Bank Governor Lesetja Kganyago heralded the fortitude of the rand and other emerging-market currencies amid the Iran war, and said this could reflect a wider souring on US assets.
The rupee hit a new all-time low against the dollar this week. Its recent slide is reminiscent of 2013, when it lost 12% of its value against the dollar in a few months. What were the drivers then, and how does it compare with the situation today?
