Rand continues to plunge

File: South Africa had already slipped into recession in the final quarter of 2019 and recently saw its credit ratings cut to junk status.

File: South Africa had already slipped into recession in the final quarter of 2019 and recently saw its credit ratings cut to junk status.

Reuters/Mike Hutchings

JOHANNESBURG - The rand continues to plunge and is currently the worst-performing currency globally.

Hovering at R15.40 to the US dollar at 12.30pm, it now stands at an 11-month-low against the greenback.

The rand has been the hardest hit by trade tensions between the United States and China.

READ: Eskom knocks rand

But local troubles are not helping, with weak data and worries about the impact of heavily indebted Eskom piling pressure on the currency.

Analysts say the weaker currency will eventually impact negatively on inflation and by extension keep the Reserve Bank away from cutting interest rates.

Source
eNCA