Rand takes another pounding
The rand has reached a new low against the pound breaking through the 21 rand level.
JOHANNESBURG - The rand has reached a new low against the pound, breaking through the 21 rand level.
The local currency has come under continued pressure over the past few weeks; and is now trading at around 13,81 to the dollar.
Emerging market currencies have taken a battering over the past month with the Chinese economy and the devaluation of the yuan mostly to blame.
But concern over US interest rate hikes and jobs data have also taken their toll on emerging market currencies.
A weak rand is bad news for the interest rates with the reserve bank already warning that a volatile currency may leave it with no choice but to hike the repo rate.
While a strong pound and dollar are good news for exporters, economists are concerned about inflation and the cost of goods being brought into the country.
Economic growth has been slow and is expected to come in below 1,4 percent for this year.