Popular Topics
20°C / 22°C
  • Sat
  • 28°C
  • 13°C
  • Sun
  • 32°C
  • 15°C
  • Mon
  • 28°C
  • 15°C
  • Tue
  • 25°C
  • 14°C
  • Wed
  • 27°C
  • 14°C
  • Thu
  • 24°C
  • 15°C
  • Sat
  • 24°C
  • 15°C
  • Sun
  • 22°C
  • 16°C
  • Mon
  • 26°C
  • 15°C
  • Tue
  • 25°C
  • 15°C
  • Wed
  • 24°C
  • 15°C
  • Thu
  • 23°C
  • 14°C
  • Sat
  • 31°C
  • 15°C
  • Sun
  • 35°C
  • 17°C
  • Mon
  • 31°C
  • 18°C
  • Tue
  • 26°C
  • 17°C
  • Wed
  • 29°C
  • 16°C
  • Thu
  • 26°C
  • 17°C
  • Sat
  • 31°C
  • 15°C
  • Sun
  • 34°C
  • 18°C
  • Mon
  • 30°C
  • 16°C
  • Tue
  • 27°C
  • 16°C
  • Wed
  • 28°C
  • 15°C
  • Thu
  • 26°C
  • 16°C
  • Sat
  • 26°C
  • 19°C
  • Sun
  • 27°C
  • 20°C
  • Mon
  • 23°C
  • 20°C
  • Tue
  • 24°C
  • 19°C
  • Wed
  • 28°C
  • 20°C
  • Thu
  • 26°C
  • 20°C
  • Sat
  • 24°C
  • 15°C
  • Sun
  • 21°C
  • 16°C
  • Mon
  • 21°C
  • 14°C
  • Tue
  • 24°C
  • 15°C
  • Wed
  • 22°C
  • 17°C
  • Thu
  • 21°C
  • 16°C
  • Sat
  • 30°C
  • 14°C
  • Sun
  • 25°C
  • 14°C
  • Mon
  • 33°C
  • 12°C
  • Tue
  • 31°C
  • 16°C
  • Wed
  • 27°C
  • 15°C
  • Thu
  • 27°C
  • 13°C
  • Sat
  • 22°C
  • 15°C
  • Sun
  • 20°C
  • 15°C
  • Mon
  • 28°C
  • 15°C
  • Tue
  • 26°C
  • 17°C
  • Wed
  • 21°C
  • 15°C
  • Thu
  • 21°C
  • 14°C
  • Sat
  • 34°C
  • 17°C
  • Sun
  • 37°C
  • 19°C
  • Mon
  • 33°C
  • 18°C
  • Tue
  • 28°C
  • 17°C
  • Wed
  • 31°C
  • 18°C
  • Thu
  • 26°C
  • 18°C
  • Sat
  • 37°C
  • 16°C
  • Sun
  • 36°C
  • 19°C
  • Mon
  • 34°C
  • 19°C
  • Tue
  • 30°C
  • 17°C
  • Wed
  • 30°C
  • 17°C
  • Thu
  • 31°C
  • 15°C
  • Sat
  • 26°C
  • 16°C
  • Sun
  • 33°C
  • 14°C
  • Mon
  • 26°C
  • 18°C
  • Tue
  • 24°C
  • 16°C
  • Wed
  • 30°C
  • 14°C
  • Thu
  • 30°C
  • 18°C
  • Sat
  • 26°C
  • 16°C
  • Sun
  • 19°C
  • 15°C
  • Mon
  • 21°C
  • 15°C
  • Tue
  • 27°C
  • 15°C
  • Wed
  • 23°C
  • 15°C
  • Thu
  • 21°C
  • 14°C

Rand off to weak start, stocks drop

They've taken their cue from weak global markets after soft Chinese factory data.

Picture: Christa Eybers/EWN.

JOHANNESBURG - The rand has fallen by more than one percent against the dollar, and stocks have dropped more than 2,6 percent on the first trading day of 2016.

They've taken their cue from weak global markets after soft Chinese factory data rattled investors.

The local currency lost about a quarter of its value against the greenback in 2015, mainly as investors dumped emerging markets, in anticipation of higher US interest rates.

But concerns about weak growth in South Africa also weighed and the shock removal of Nhlanhla Nene as finance minister early last month, triggered a heavy sell-off that pushed the currency to a historic low of 16,04 to the dollar.

Economist Dawie Roodt said, "I am very concerned about where the currency currently is at it will lead to inflationary pressures and a higher interest rate. Eventually, it will lead to lower economic profits as well. Those people who were asking for a lower currency, they have that now. There are very little benefits from a lower currency. In fact, a lower currency simply means that we are all poorer today."

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