Rand continues to plunge against US dollar

The rand starts the day from a back over R14 to the US dollar.

The local currency took a steep slide on Wednesday in reaction to a surging US dollar.

The dollar rose after the US central bank indicated it expected to see two interest rate hikes in 2023.

A higher interest rate environment strengthens the dollar and by extension, weakens emerging market currencies like the rand.

A weaker rand can push up the petrol price and make other imported goods more expensive.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: