The rand was weaker against the dollar in midday trade on Friday but was off intraday weakest levels‚ as the fall-out from the shock overnight axing of Finance Minister Pravin Gordhan continued to reverberate through markets.
The rand trended firmer on a news conference held by the outgoing minister‚ Pravin Gordhan‚ at the Treasury in Pretoria‚ in which he refuted the charges levelled against him in a rogue intelligence report as “absolute nonsense”.
The intelligence report has been given as the reason Gordhan was recalled by President Jacob Zuma from the overseas investor roadshow on Monday‚ and his replacement with Malusi Gigaba on Thursday.
At 11.48am the rand was at R13.3768 against the dollar from R13.2644. It reached an intraday weakest level of R13.6282/$ after Gigaba’s appointment.
The rand was at R14.2843 against the euro from R14.1566‚ and was at R16.6553 against the pound from R16.5395.
The euro was at $1.0678 from $1.0673.
“Technical trading for the domestic unit would largely hinge upon the reaction within SA and in particular‚ the reaction from senior ministers with regard to the contentious Cabinet reshuffle‚” Momentum SP Reid analysts said.
In a fall reminiscent of that witnessed in the wake of Zuma’s replacement of then finance minister Nhlanhla Nene with the relatively unknown Des van Rooyen in December 2015‚ the rand plummeted overnight‚ losing almost 3% more against the dollar‚ pound and euro in opening trade.
The rand was expected to remain vulnerable in the short term as the reviews of the ratings agencies were announced over the next few months.
“As it stands‚ there was a strong probability that we will get downgraded by all three ratings agencies‚” said TreasuryOne analyst John Moni.? — TMG Digital/BusinesLIVE
Rand is off weakest level as Gordhan says intelligence report is total ‘nonsense’
The rand was weaker against the dollar in midday trade on Friday but was off intraday weakest levels‚ as the fall-out from the shock overnight axing of Finance Minister Pravin Gordhan continued to reverberate through markets.
The rand trended firmer on a news conference held by the outgoing minister‚ Pravin Gordhan‚ at the Treasury in Pretoria‚ in which he refuted the charges levelled against him in a rogue intelligence report as “absolute nonsense”.
The intelligence report has been given as the reason Gordhan was recalled by President Jacob Zuma from the overseas investor roadshow on Monday‚ and his replacement with Malusi Gigaba on Thursday.
At 11.48am the rand was at R13.3768 against the dollar from R13.2644. It reached an intraday weakest level of R13.6282/$ after Gigaba’s appointment.
The rand was at R14.2843 against the euro from R14.1566‚ and was at R16.6553 against the pound from R16.5395.
The euro was at $1.0678 from $1.0673.
“Technical trading for the domestic unit would largely hinge upon the reaction within SA and in particular‚ the reaction from senior ministers with regard to the contentious Cabinet reshuffle‚” Momentum SP Reid analysts said.
In a fall reminiscent of that witnessed in the wake of Zuma’s replacement of then finance minister Nhlanhla Nene with the relatively unknown Des van Rooyen in December 2015‚ the rand plummeted overnight‚ losing almost 3% more against the dollar‚ pound and euro in opening trade.
The rand was expected to remain vulnerable in the short term as the reviews of the ratings agencies were announced over the next few months.
“As it stands‚ there was a strong probability that we will get downgraded by all three ratings agencies‚” said TreasuryOne analyst John Moni.? — TMG Digital/BusinesLIVE