BREAKING | Rand hits new record low amid Russia furore | Business

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On Friday morning, the rand was in freefall, hitting a record R19.45/$ amid the South African arms-to-Russia scandal. | News24_Business

Even before the Russian crisis, the rand was bleeding due to continuing concerns about the economic impact of load shedding and greylisting. Also, following aggressive US rate hikes the differential between the US and local rates has now shrunk, and South African rates are not that attractive anymore.The rand slump will fuel more inflation, as most of SA's fuel is imported. This may have cemented a 25- or 50-basis-point hike at the end of May.

Government bond yields were also hard hit by the latest crisis, which will have a knock-on effect on the state's borrowings.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month.

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BREAKING | Rand breaches R19/$ | BusinessThe rand breached the R19/$ level on Thursday, hit by a toxic cocktail of load shedding and a deepening economic crisis, as well as interest rate concerns. | News24_Business
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