The rand-dollar exchange rate weakened to more than R17 for a dollar yesterday. This is bad news after an over-recovery of the fuel price was recorded for the first time in a while last week. The over-recovery means that given the oil price and the exchange rate, the petrol price was actually a bit too high and there might be price relief in August. But if the exchange rate weakens it will not be possible. So what made the rand depreciate? It is complicated.
* The Economics Minute is supported by the NWU Business School.
