Rand hits R17.99 to US Dollar

South Africa’s currency has hit a new low against the US dollar, continuing its downward spiral.

By - January 11, 2016 Share on LinkedIn
South African money rand

South Africa’s currency has hit a new low against the US dollar, continuing its downward spiral.

According to Reuters, late Sunday night – as Asian markets opened – the rand tanked to as low as R17.99 to the US dollar before pulling back to R17.25.

In trade on Monday morning, the rand was trading at R16.72 to the dollar – a new record low, since hitting its weakest point on Friday.

According to reports, the reason behind the latest dip is Japanese sellers – who are selling rand for dollars.

Rand vs dollar - Monday 11 Jan

Analysts warned that the rand is currently at the mercy of external factors – most notably, trading circumstances in Asian markets – and that there may be worse to come.

Economist Mike Schussler from Economists.co.za sketched a grim scenario for the South African economy should the rand lose 20% of its value against the greenback in 2016.

Last year the rand gave up 25.9% of its value.

“If the rand should fall just another 20% over the next year… by the beginning of 2017 a dollar would cost R20,” he said.

More on the rand

The rand could fall to R19/$ – economist

No Netflix rand support planned

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you pay your TV license?

View Results

Loading ... Loading ...

More News

ICT Policy White Paper for South Africa gets Cabinet approval

Government security

The National Integrated Information Communication Technology Policy White Paper has received Cabinet approval.

Rural municipalities in South Africa forced to use dial-up: ISP

Failed South Africa Flag broken

Internet service provider Zinia said that it is time to move from politics to delivery when it comes to rolling out broadband in South Africa.

Inside Facebook’s astonishing data centre

facebook dc

Facebook CEO Mark Zuckerberg has published details and photos of the company’s Luleå data centre, located close to the Arctic Circle.

DStv BoxOffice available to all subscribers

DStv BoxOffice

MultiChoice has announced that its BoxOffice movie rental service is now available to all its subscribers.

Free MyBroadband Newsletter
×