Rand strengthens despite Gordhan and Madonsela matters
The rand was firmer against major global currencies on Friday afternoon‚ even though political uncertainty continued to cloud sentiment.
Finance Minister Pravin Gordhan said through his attorney on Friday that he would not be making representations to National Director of Public Prosecutions Shaun Abrahams regarding fraud charges laid against him‚ citing a lack of confidence that Abrahams would give him a fair hearing.
Gordhan’s legal representative‚ Tebogo Malatji‚ said after having studied the charges‚ it became “clear that they manifested a resolute and not well-founded determination to prosecute the minister at all costs”.
Public Protector Thuli Madonsela has not released her report on state capture following an agreement struck at the High Court in Pretoria on Friday morning.
President Jacob Zuma and Co-operative Governance and Traditional Affairs Minister Des van Rooyen approached the courts to prevent the release of the report‚ which could contain complaints of an inappropriate relationship between state officials and the controversial Gupta family.
RMB Africa analyst Neville Mandimika said it was ironic how the focus on domestic political issues meant the rand ignored some aggressive moves in global markets.
US Federal Reserve chair Janet Yellen was due to speak at a conference hosted by the Fed later on Friday.
Mandimika said that Yellen’s speech may not be a game changer‚ with only two months to December’s Fed meeting‚ as there was no reason to commit to hiking rates‚ but thoughts were that “she will start preparing markets for that eventuality”.
At 3.31pm the rand was at R14.1288 to the dollar from R14.2558 on Thursday.
It was at R15.5505 to the euro from R15.7632 and R17.2581 to the pound from R17.4712.
The euro was at $1.1007 from $1.1057 previously.
- TMG Digital/BusinessLIVE