Power problems help push rand to six-year low

Johannesburg - The rand tumbled well over 1% to its weakest level against the dollar since October 2008 on Wednesday as increasingly risk-averse investors pulled out of the currency.

At 13:12 the rand slipped 1.33% to R11.8350, with some analysts saying the currency was weaker because of ongoing power outages and diminishing confidence in the government's ability to spur growth.

"The chickens have come home to roost for our currency today," said Ion de Vleeschauwer, a currency dealer at Bidvest Bank.

"It's nervous markets out there, with international markets particularly anti-South Africa at the moment. Markets are nervous about Jacob Zuma's (State of the Nation speech) and our continued woes on electricity," he added.

Zuma is expected to address parliament in Cape Town on Thursday, where he will outline how his government plans to tackle the worst electricity shortages since 2008 and economic growth persistently stuttering below the 2% mark.