South African rand weakens to 16.1 per US dollar
The rand weakened to around 16.1 per US dollar, lowest in over a week, as the dollar firmed after hawkish remarks by Fed Chair Kevin Warsh at Jackson Hole.
The South African rand weakened to around 16.1 per US dollar, the lowest in over a week, as the dollar gained groung following hawkish remarks from Fed Chair Kevin Warsh.Speaking at the Jackson Hole symposium, Warsh struck a hawkish tone, noting that inflation has yet to slow meaningfully and that policymakers need clearer signs of easing price pressures.
Meanwhile, ongoing uncertainty around the situation in the Middle East continued to influence global market sentiment.
On August 25, the rand touched 15.9 per US dollar, reaching its strongest level since the Iran war began in late February.
The currency also benefits from the SARB’s relatively restrictive monetary stance, confidence in structural reforms and an improving fiscal outlook.