Emerging markets face volatile start in 2016

Director at Sasfin Securities, David Shapiro says major falls in the Chinese market have caused global panic with emerging markets, including South Africa, feeling the biggest pinch. 

The rand was earlier today sitting at around R16.16 to the US dollar. 

Shapiro says the local currency is vulnerable because of other external factors.

"We've been hurt because there's this general movement out of emerging markets and then locally conditions are concerning as well. Commodity prices are coming down, we're facing a drought, there are a whole lot of other political issues here that are worrying investors. 

"We've opened the market and we're down about 3, 4, 5% in four days which is something you never normally get at the beginning of the year," he said.

(File photo: Getty Images)