What’s next for the weakening South African rand? How low can it go?

Central Bank Governor Lesetja Kganyago said this past weekend that a further fall in the value of the rand is not necessarily a bad thing.

Kganyago believes the currency should be allowed to play its role as a shock absorber.

The Money Show’s Bruce Whitfield interviewed John Cairns, Currency Strategist at Rand Merchant Bank, about the weakening rand.

Scroll down to read some quotes from the audio below.

What’s driving the rand weaker is not South African fundamentals, but rather global factors.

John Cairns

You can’t rule out R15 to the dollar.

John Cairns

We’ve been losing 10 cents per day against the dollar in the last two weeks.

John Cairns

If the Fed hikes interest rates it will hit the rand hard.

John Cairns

The rand is actually strengthening against a number of currencies such as those of Australia, Brazil and Turkey.

John Cairns

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This article first appeared on 702 : What’s next for the weakening South African rand? How low can it go?


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