By Zuko Komisa
On Monday, the rand fell to R17 to the US dollar, losing about 0.5 per cent by 13h00 SA time.
The rand unexpectedly declined during the past two weeks, going from R15.80 to over R16.80 per dollar over the weekend.
In March or April, it was still being traded at roughly R14.50.
Since September 2020, when Covid-19 lockdowns were still mostly in effect, this is its lowest level.
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Business Tech reports that, while local problems undoubtedly do not help the rand, recent depreciation in the currency is mostly driven by the stronger dollar/weaker euro dynamic, this is according to economists at the Bureau of Economic Research (BER) on Monday.
“The rand weakened by another 2.3% week-on-week against the greenback, while it lost a similar magnitude against the UK pound – which found some, likely temporary, support in the wake of the resignation of prime minister Boris Johnson, the BER said.
“The dollar continues to benefit from US Fed tightening as well as concerns about the global growth outlook – even as the aggressive Fed is seen as one of the possible causes of the economic downturn.”
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