Rand weakens slightly behind US dollar

The rand has traded at a relatively strong level around R14.50 to the dollar for the past three weeks, despite a strong dollar, which usually weakens the rand.

The dollar’s strength can be attributed to higher and quicker interest rate rises in the US, which attract demand for the dollar.

However, so far today, the rand has weakened by nearly 2%, catching up with the stronger dollar and is trading around R15.60 in early JSE trade.

This comes after the rand was still trading below R15 to the dollar during yesterday’s session.

Besides dollar strength, the rand’s newfound weakness can also be blamed on Eskom’s recent rolling blackouts and the floods in KwaZulu-Natal, which have dented economic growth prospects.