Rand spirals down following surge in oil price

Comair received a massive payout from SAA earlier this year, after winning a legal settlement in a decade-old dispute involving SAA’s travel agent incentive schemes. Courtesy #DStv403

JOHANNESBURG - The rand has dropped for a second consecutive day, following Monday's surge in the oil price.

A drone attack at the weekend more than halved Saudi Arabia's production capabilities.

It's seen investors rush to safe-haven assets and the rand hasn't escaped the shift.

WATCH: What will oil price spike mean for South Africans?

The local currency had been strengthening in recent weeks because of a potentially lower interest rate environment globally.

That was on top of news that Moody’s might not downgrade the country’s credit rating.

The rand is about 12 cents weaker since Monday.

The Reserve Bank will consider the oil price and the movement of the currency when it decides on interest rates on Thursday.

Source
eNCA