The rand is continuing to weaken and there are concerns that the monetary policy committee might increase the interest rates soon.
Speaking to Ray White on The Midday Report, an economist at Nedbank Busisiwe Radebe says there are a number of factors affecting the rand currently.
One of them is the expectation that the US interest rates will be increased so we saw the rand took a knock there.— Busisiwe Radebe, Economist at Nedbank
And also the GDP figures that came out last week. I think the markets should have expected those figures given firms and strong the GDP was in the fourth quarter of last year.— Busisiwe Radebe, Economist at Nedbank
Radebe says we can't look at a couple of days and predict the rand will fall for the rest of the year. He says currently the rand is fluctuating.
If this sort of free fall holds and the rand goes weak all the time then we know it's going to start hitting into inflation and from inflation, then we know the reserve back must act.— Busisiwe Radebe, Economist at Nedbank
Listen to how long we should wait before we start panicking...