South African rand weakens amid fresh power cuts

Monday was a gloomy day for South Africa’s currency as the country resumed power cuts over the weekend.

The rand was trading at 14.35 to the U.S. dollar when markets opened.

This represents a depreciation of 0.35% as at close of markets in New York on Friday.

The reaction of the South African currency comes as businesses express fear over a new wave of power cuts in South Africa.

The national electricity company, Eskom is struggling to reassure the business community.

Beyond the domestic problems linked to the fragile energy production, analysts have cited international pressures.

They say tensions between the United States and Iran should lead to an over-evaluation of the dollar due to scarcity of short-term liquidity.

Reuters