The rand continues to take a knock against the US Dollar.
Recent events have contributed to the Rand taking a knock against the US Dollar. Loadshedding is back and business that are still trying to overcome the effects of the lockdown are faced with yet another challenge to try to overcome. Analysts have weighed in and believe that much of the weakening is due to international events , however, power cuts are not helping investor sentiment.
The rand traded around the R15.50 territory against the Greenbag today.
The South African Reserve Bank Monetary Policy Committee is still yet to take decisions regarding Interest rate decision. This can be used to manage the inflation rate and the rand could respond to any changes the reserve bank makes. The implied policy rate path of the Quarterly Projection Model (QPM) indicates an increase of 25 basis points in the fourth quarter of 2021 and further increases in each quarter of 2022 and 2023.
If the rand continues taking a deeper dip while the price of crude oil hovers above $80 per barrel, we could see another massive fuel price increase in December.