Rand stabilises at weaker levels as weak commodity prices hit home
Australia has forecast iron ore to average at about $52 per tonne in 2017, significantly lower than the high of $94 just a few weeks ago
The rand stabilised at a substantially weaker level in late trade on Thursday, hit by the correction in commodity prices, including that of iron ore. A weaker currency inflates the cost of imports, which was valued at R91.4bn in January, according to data from South African Revenue Service, outshining exports that stood at R80.59bn in the same period. The rand slipped to session lows of R13.28 to the dollar, its weakest in nearly three weeks as the price of iron ore fell to $86 per tonne, from a high of $94 just a few weeks ago, which was the best in many months. The retreat in the price of the steel-making ingredient and other commodities lend credence to a view that the recent rally had limited upside potential. Australia has forecast iron ore to average at about $52 per tonne in 2017. BHP Billion chief financial officer Peter Beaven warned shareholders that Chinese demand for iron ore and other commodities was slowing down. SA generates significant foreign exchange through its ex...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.