Rand takes a dump due to US risk

The Rand’s fall to R17,75 this week is the result of US risk perceptions and a firm dollar, but load shedding will surely add to the currency’s woes as it weakens the investment case for South Africa, and further curtail growth. In addition, it could have a negative influence on the repo rate increase that will be announced on Thursday. Hugo Pienaar, chief economist at the Bureau of Economic Research at Stellenbosch University, says over the past week, global and domestic financial markets were dominated by a notably worse-than-expected US consumer inflation report for August. “This not only sealed the…