20°C / 22°C
  • Sat
  • 19°C
  • 4°C
  • Sun
  • 20°C
  • 7°C
  • Mon
  • 17°C
  • 4°C
  • Tue
  • 18°C
  • 6°C
  • Wed
  • 20°C
  • 7°C
  • Thu
  • 18°C
  • 7°C
  • Sat
  • 17°C
  • 9°C
  • Sun
  • 17°C
  • 9°C
  • Mon
  • 16°C
  • 8°C
  • Tue
  • 15°C
  • 8°C
  • Wed
  • 14°C
  • 7°C
  • Thu
  • 15°C
  • 6°C
  • Sat
  • 20°C
  • 8°C
  • Sun
  • 22°C
  • 7°C
  • Mon
  • 19°C
  • 6°C
  • Tue
  • 20°C
  • 7°C
  • Wed
  • 22°C
  • 8°C
  • Thu
  • 20°C
  • 8°C
  • Sat
  • 21°C
  • 5°C
  • Sun
  • 21°C
  • 6°C
  • Mon
  • 20°C
  • 4°C
  • Tue
  • 21°C
  • 7°C
  • Wed
  • 21°C
  • 6°C
  • Thu
  • 20°C
  • 7°C
  • Sat
  • 22°C
  • 15°C
  • Sun
  • 19°C
  • 15°C
  • Mon
  • 21°C
  • 15°C
  • Tue
  • 23°C
  • 14°C
  • Wed
  • 20°C
  • 16°C
  • Thu
  • 22°C
  • 16°C
  • Sat
  • 17°C
  • 9°C
  • Sun
  • 16°C
  • 9°C
  • Mon
  • 18°C
  • 9°C
  • Tue
  • 16°C
  • 8°C
  • Wed
  • 14°C
  • 8°C
  • Thu
  • 20°C
  • 7°C
  • Sat
  • 17°C
  • 5°C
  • Sun
  • 17°C
  • 6°C
  • Mon
  • 17°C
  • 8°C
  • Tue
  • 13°C
  • 7°C
  • Wed
  • 13°C
  • 5°C
  • Thu
  • 17°C
  • 5°C
  • Sat
  • 15°C
  • 9°C
  • Sun
  • 15°C
  • 10°C
  • Mon
  • 15°C
  • 10°C
  • Tue
  • 14°C
  • 8°C
  • Wed
  • 13°C
  • 7°C
  • Thu
  • 16°C
  • 9°C
  • Sat
  • 22°C
  • 7°C
  • Sun
  • 23°C
  • 6°C
  • Mon
  • 21°C
  • 8°C
  • Tue
  • 20°C
  • 7°C
  • Wed
  • 22°C
  • 7°C
  • Thu
  • 21°C
  • 9°C
  • Sat
  • 20°C
  • 2°C
  • Sun
  • 18°C
  • 0°C
  • Mon
  • 19°C
  • 1°C
  • Tue
  • 21°C
  • 4°C
  • Wed
  • 20°C
  • 6°C
  • Thu
  • 21°C
  • 6°C
  • Sat
  • 26°C
  • 5°C
  • Sun
  • 21°C
  • 7°C
  • Mon
  • 19°C
  • 7°C
  • Tue
  • 22°C
  • 7°C
  • Wed
  • 25°C
  • 7°C
  • Thu
  • 22°C
  • 8°C
  • Sat
  • 15°C
  • 8°C
  • Sun
  • 15°C
  • 8°C
  • Mon
  • 17°C
  • 8°C
  • Tue
  • 16°C
  • 7°C
  • Wed
  • 13°C
  • 8°C
  • Thu
  • 21°C
  • 8°C

Economists insist the rand will stabilise

This afternoon, the rand touched its weakest level ever against the dollar at 14,01.

This has been attributed to possible interest rate hikes in the US and Chinese market uncertainty. Picture: EWN.

JOHANNESBURG - Economists say while global interest rates and emerging markets continue to drive the rand down against major currencies, the local currency will stabilise.

This afternoon, the rand touched its weakest level ever against the dollar at 14,01.

This has been attributed to possible interest rate hikes in the US and Chinese market uncertainty.

RMB currency strategist John Cairns says if the rand wasn't taking the blows from global factors there would be an impact on other local revenues.

"What's' driving the rand weak is South African fundamentals at the moment, but it's really global issues. Fears of China looming Fed hikes, it's all merging markets currency. It's not South Africa specifically at this stage."

Yesterday, Central Bank Governor Lesetja Kganyago said a further fall in the rand was not necessarily a bad thing and the currency should be allowed to play its role as a shock absorber.

Kganyago also told Reuters in an interview at the Group of 20 finance chiefs meeting that, to the extent rand depreciation was part of a global foreign exchange rebalancing; it need not be a worry.

"Our assessment of the South African economy is that the risk to the economic outlook is on the downside. It doesn't follow that the depreciation of the rand is a bad thing for South Africa, if anything, it should spare the export sector" and [importers]," he said.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus