Since the start of September, the rand is down by 4.3% against the US dollar. This is according to Economist at Nedbank, Isaac Matshego.
He says the pressure is continuing to mount for the emerging marking of the so-called fragile 5 which includes Brazil, India, Indonesia, Turkey and South Africa.
Domestically we are continuing to see pressures on the rand and we are very worried about the fiscal numbers.— Isaac Matshego, Economist at Nedbank
Matshego says as the country awaits the finance minister's midterm budget policy statement that's coming up on the October 25. However, they are already seeing that the revenue numbers are running behind schedule.
The weaker rand simply means that we could see inflation coming under some pressure and we could see the Reserve Bank holding on on further interest rates cuts.— Isaac Matshego, Economist at Nedbank
To hear the rest of the interview, listen below:
This article first appeared on CapeTalk : The rand weakens by 4.3% against US dollar