Soaring petrol prices and increased load shedding have left South Africans battered and bruised. To add insult to injury, on Tuesday, the rand dipped to its weakest level against the dollar since 2020 as global investors lose confidence.
According to News24, the rand traded at R16.58 to the dollar, a percent weaker than on Monday. However, South Africa’s currency isn’t the only one taking a knock. The European currency dropped to its lowest level since 2002, while the rand remained strong at R19.75 against the pound and R16.98 to the euro.
Investors are currently practising restraint amid fears that central banks around the world will hike interest rates and push economies over the edge and into a recession, as per Moneyweb.
The fear appears to be gaining traction as the euro fell as low as $1.0261 as investors bet on safer assets such as the dollar.
“Growing fears of a recession are hammering the euro lower, whilst the dollar is soaring on bets that the Fed will keep hiking rates aggressively to tame inflation,” City Index analyst Fiona Cincotta told AFP.
Things are not looking good for the rand as the months roll on with the currency losing almost 4% to the dollar in June.
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Picture: Cape {town} Etc Gallery