Omicron blues: Rand pummeled to R16.06/$
The South African rand weakened further on Friday as daily recorded Covid-19 cases surge to beyond 22 000, driven by the Omicron variant of SARS-CoV-2.
There has been no commensurate rise in deaths, and early data suggest Omicron cause milder symptoms than Delta.
At 9:30 AM, the rand was trading at R16.06 against the dollar, further extending losses from it suffered on Thursday.
US inflation in November rose by 6.8% year-on-year, its highest rate in 31 years, raising expectations of higher interest rates and a quicker tapering of the Fed’s bond-buying.
The rand usually has a positive experience in the last quarter of the year and the first quarter of next year… This year has been turned on its head. The United States… is approaching interest rate hikes… pulling money away from emerging markets…Annabel Bishop, Chief Economist - Investec
South Africa’s government now must protect domestic tourism… It needs to be cautious… The Omicron seems to be much milder than Delta… few people are getting severely ill… of course, many more people are vaccinated… [the government must] not close any areas… such as beaches…Annabel Bishop, Chief Economist - Investec
We’re likely to see the domestic currency in 2022 run between R15 and R16 to the dollar… The rand is unlikely to see any phenomenal strength…Annabel Bishop, Chief Economist - Investec
Source : https://www.123rf.com/stock-photo/south_africa_rand.html