The rand was on much better footing in late trade on Thursday‚ after the Reserve Bank kept the repurchase rate unchanged in line with the market forecast.
Viewed as one of the most liquid currencies‚ the rand flirted with R12.80/$‚ which marked a significant turnaround from session lows of R13.11/$.
The uncertainty around the fate of the Finance Minister Pravin Gordhan dominated sentiment‚ a view reinforced by Reserve Bank governor Lesetja Kganyago.
Concluding the three-day monetary policy committee meeting‚ Kganyago said the heightened domestic political uncertainty posed a risk to the rand and inflation outlook.
“I think the market is waiting to see what the fate of Gordhan is going to be: it seems that a stay of execution has happened last night at a Cabinet meeting‚ but for how long?” said Charl Botha‚ portfolio manager at Mercato Financial Services.
Speculation reached fever pitch this week that Gordhan and Deputy Finance Minister Mcebisi Jonas would lose their jobs in a Cabinet shuffle‚ which is seen by many as a political witch-hunt.
The developments came after President Jacob Zuma ordered the two officials to return home on Monday from an overseas investor trip‚ without providing reasons.
At 4.13pm‚ the rand was at R12.8212 to the dollar from a previous close of R13.0388. It was at R13.7692 against the euro from R14.0369 and at R16.0373 against the pound from R16.2161
The euro was at $1.0739 from $1.0765.
Rand in better shape as Reserve Bank keeps rates on hold
The rand was on much better footing in late trade on Thursday‚ after the Reserve Bank kept the repurchase rate unchanged in line with the market forecast.
Viewed as one of the most liquid currencies‚ the rand flirted with R12.80/$‚ which marked a significant turnaround from session lows of R13.11/$.
The uncertainty around the fate of the Finance Minister Pravin Gordhan dominated sentiment‚ a view reinforced by Reserve Bank governor Lesetja Kganyago.
Concluding the three-day monetary policy committee meeting‚ Kganyago said the heightened domestic political uncertainty posed a risk to the rand and inflation outlook.
“I think the market is waiting to see what the fate of Gordhan is going to be: it seems that a stay of execution has happened last night at a Cabinet meeting‚ but for how long?” said Charl Botha‚ portfolio manager at Mercato Financial Services.
Speculation reached fever pitch this week that Gordhan and Deputy Finance Minister Mcebisi Jonas would lose their jobs in a Cabinet shuffle‚ which is seen by many as a political witch-hunt.
The developments came after President Jacob Zuma ordered the two officials to return home on Monday from an overseas investor trip‚ without providing reasons.
At 4.13pm‚ the rand was at R12.8212 to the dollar from a previous close of R13.0388. It was at R13.7692 against the euro from R14.0369 and at R16.0373 against the pound from R16.2161
The euro was at $1.0739 from $1.0765.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos