Weak rand contributing to rising fuel prices

JOHANNESBURG - The rand reaches levels last seen in June this year, further contributing to the higher fuel prices that we are likely to see beyond the increase that is kicking in at midnight.  

The local unit weakened against the dollar on the back of disappointing local economic data and the stronger dollar.

READ: Rough road ahead for the rand

Monday, ABSA’s PMI showed that the manufacturing sector declined to its lowest levels since July 2021 on the back of cost pressures and power cuts.

At the same time, the rand suffered from reports that the interest rates are set to remain higher for longer, strengthening the dollar.

The weaker rand will result in the continued increase in fuel prices which has hit sectors like agriculture hard as they also grapple with extreme weather patterns and higher interest rates.