Rand under pressure

The local unit edged past R19 to the pound and was moving towards R14 to the euro.

FILE: Those exporting products are welcoming the weaker rand. Picture: Christa Eybers/EWN.

JOHANNESBURG - The rand is under pressure against major currencies edging past R19 to the pound and towards R14 to the euro.

The local unit has lost about two percent this week with a number of international factors applying pressure.

Sasfin's David Shapiro says, "I think there are some factors which are specific to South Africa. We are under-performing and we are not growing at the kind of pace that we have."

He says South Africa is not alone.

"It is starting to reflect worries about emerging markets. It's South Africa and generally emerging markets."

Investment Solutions' Chris Hart says this spells bad news for locals.

"The weaker rand means higher inflation and higher fuel prices.

"The rand has been weakening since 2011. The fundamentals behind the rand have been weakening and we can see this in the current account deficit."

Hart says a lack of economic growth is contributing to a weaker rand.

Those exporting products are welcoming the weaker rand but travellers are seeing the situation differently.