Rand heads for worst weekly drop to the dollar in a month
The rand laboured under a strong dollar, which drew support from expectations of higher interest rates in the US
The rand was relatively flat in mid-morning trade on Friday, but still headed for its worst weekly drop against the dollar in about a month, dealing a potential blow to hopes of relief in fuel prices.SA is a net importer of the oil, the price of which is determined by global factors. Brent crude was relatively stable at $73 a barrel in mid-morning trade, after falling 6.5% in July, in its biggest monthly drop since February.In a sharp about-turn, the value of the rand has dropped just more than 2% against the greenback so far this week, once again putting on display its vulnerability to shifts in global sentiment.The rand laboured under a strong dollar, which drew support from expectations of higher interest rates in the US. Earlier in the week, the US Federal Reserve said the US economy was in good shape, implying that it would continue with its interest rate-hiking cycle.US nonfarm payrolls, due out in the afternoon, could provide further signs of economic momentum, which could bo...
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.