Weakening rand
Economist explains why SA’s rand is weak
Chief Economist at Econometrix Dr Azar Jammine explains the combination of factors that have led to a weak currency.
Asian stocks looked vulnerable to another sell-off on Tuesday
At 1555 GMT the local unit traded at 10,6925 against the greenback.
The currecy fell more than 1% to its weakest in two months against the dollar on Monday.
The rand fell to 10,3735 to the dollar at 1557 GMT, off a 10,3445 close in New York on Friday.
The group performed well this year notwithstanding the volatility of the rand.
Economists say this is due to the weakening rand and an increase in the price of oil.
Kgalema Motlanthe says government continues to foster economic growth & innovation.
The move takes the repo rate to 5,5 percent and the prime lending rate to nine percent.
Experts say strikes in the mining sector have contributed to the currency's weakness.
The currency stabilised in afternoon trading but remained well over the 11 mark.
Economists say a weaker rand will result in higher fuel and food prices.