Rand worsens to over 15 against the dollar

The rand weakened through the R15/$ mark on Tuesday morning‚ in a slide coinciding with a pick-up in oil international oil prices – a toxic mix for already rising inflation.

The renewed slide in the notoriously volatile currency is likely to present a challenge for the government‚ which took the unusual step on Monday of intervening to soften the blow of record-high fuel prices.

Petrol prices will increase 5c a litre from midnight‚ just a fifth of the maximum amount recommended by the Automobile Association‚ the department of energy said on Tuesday.

Emerging markets as an asset class have been under pressure recently‚ affected by an array of factors including concerns about Turkey’s economic crisis.

At 10.12am‚ the rand was at R15.0423 to the dollar‚ from R14.8673. It was at R17.3900 to the euro from R17.2736 and at R19.2929 to the pound from R19.13.39.

By: Andries Mahlangu – BusinessLIVE

Source: TMG Digital.

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