South African Rand at Over 1-Month Low
The South African rand weakened to around 16.3 per USD, the lowest level since early August, pressured by a stronger US dollar and higher oil prices. The greenback strengthened ahead of an expected Fed rate hike, weighing on emerging-market currencies. Meanwhile, the oil shock is particularly significant for South Africa because the country relies on imports to meet much of its energy needs, raising both the import bill and inflation risks. Falling gold and other precious metals prices are adding to the strain by reducing the value of key export revenues.
3 per USD, the lowest level since early August, pressured by a stronger US dollar and higher oil prices. The greenback strengthened ahead of an expected Fed rate hike, weighing on emerging-market currencies. Meanwhile, the oil shock is particularly significant for South Africa because the country relies on imports to meet much of its energy needs, raising both the import bill and inflation risks. Falling gold and other precious metals prices are adding to the strain by reducing the value of key export revenues.