As oil-producing countries generally recycle dollars back into the global financial system, falling prices reduce liquidity and boost the greenback, said Nedbank Corporate and Investment Banking strategists Mehul Daya and Neels Heyneke in a note.
Assuming a fair value of $58 a barrel, this would imply a 3% appreciation of the dollar, which would bring the rand to about R15/$, they said.
Losses on the JSE were broad-based, with general retailers and miners faring worst.
US markets failed to rebound on Tuesday following a sharp sell-off of tech stocks on Monday. Apple’s share price slide continued, with slashed earnings forecasts from two key suppliers raising concern about the outlook for the company’s new iPhone, reported Dow Jones Newswires.