S.African rand hits new 20-month low as investors embrace dollar.

With South Africans learning to live with the current cycle of stage 6 load shedding, many believe the ongoing power cuts to be the antagonist behind the weak rand. However, treasury experts say the power outages are only a small contributor to a far greater picture.

Reuters reported that the rand hit a 20-month low in trade on Tuesday touching R16.60 against the dollar amid fears of a looming global recession. And on Wednesday, the local unit continued to soften against the greenback.