Rand Weakens by 2.6% During Holiday Trading, Economic Predictions for 2022 Do Not Look Promising
- The rand has weakened by 2.6%, meaning that it is trading at R18.03 against the Euro, R15.93 against the US Dollar and R21.44 against the Pound
- Holiday period fatigue and the sharp rise in Covid-19 cases due to the Omicron variant are seen as the top two reasons for the losses
- In 2022's first quarter, Omicron could cause further losses in many markets globally, which can be repeated in future waves
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JOHANNESBURG - Yesterday (29 December), the Rand weakened by 2.6%. By the end of the day, the Rand was trading at R18.03 against the Euro, R15.93 against the US Dollar and R21.44 against the Pound.
The price of gold dropped by 1%, which decreased share prices in Harmony, AngloGold and Gold Fields. This has been credited to fatigue in the period between Christmas Day and New Year's Day.
According to Reuters, the global surge in Covid-19 infections has affected holiday trading, causing losses in many markets, including aviation and currency exchange.
Source: Getty Images
Recent market losses and economic predictions for 2022
Tokyo's markets closed lower, but London reported a rise in trading at midday as they tried to catch up after a long weekend, Fin24 reports.
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Kweichow Moutai, a Chinese beverage company that rivals international liquor groups, experienced major losses This had a ripple effect across Chinese markets.
Mark Zandi, an economist, has predicted that in 2022's first quarter, Omicron could cause further losses in many markets globally and that further waves and variants could have a similar effect.
Experts predict 'likely drop' of petrol from R20 a litre as relief on the cards for SA
In other economic news, Briefly News recently reported that South African motorists were taken aback when the price of petrol shot up to above R20 a litre at the start of December. But relief may not be so far away after all as energy experts now foresee a likely drop in the fuel price.
The Department of Mineral Resources and Energy is expected to announce the new petrol price adjustment on Friday, making way for motorists to recover from the country's record fuel price hike that came into effect earlier this month after the rand weakened against the US Dollar.
Since then, the local currency has made significant inroads to regain some of its strength, having plummeted to R16.15 to the Dollar at the time of the steep hike. The current outlook means motorists can expect to cough up less than R20 for a litre of fuel at the start of the New Year.
Source: Briefly News
