Join Moneyweb for a post-budget webinar with Dr Adrian Saville, Dr Iraj Abedian, Sizakele Marutlulle and Dr Azar Jammine for further insights on Wednesday, 28 October at 15h30.

Rand softens as investors eye local politics

The ANC is likely to give a public report of the weekend meeting this week.
Image: Waldo Swiegers, Bloomberg

The rand softened early on Monday, giving back some of its big gains from the end of last week spurred by a significantly weaker dollar, as investors awaited details of the ruling African National Congress’s (ANC) weekend meeting.

At 0650 GMT the rand was 0.14% weaker at R16.61 per dollar compared to its close of R16.59 on Friday.

The currency rallied more than 2% at the end of last week to its firmest in nearly a month, crossing the R17.00 threshold as investor bets that lending rates in the United States would stay low for longer suppressed demand for greenbacks.

The rand’s rally was however restrained by intensified infighting within the ruling ANC as the party headed into a weekend meeting with opposing factions lashing out at each other over corruption, leading to speculation over possible cabinet changes.

On Sunday, the party said President Cyril Ramaphosa will appear before its integrity commission over campaign donations. Finance Minister Tito Mboweni later wrote on his Twitter account that he was not quitting government.

On Friday, Ramaphosa’s predecessor, Jacob Zuma, accused the president of bringing the party into disrepute over a letter he sent to the party calling for action against party members accused of graft.

“Although Friday’s move was clearly more about the USD than it was about SA politics, it may well be the politics that help the rand extend its gains vs the USD to retest the lows around R16.40 seen through July,” said economists at ETM Analytics.

“Should a strong reformist agenda then materialise from the latest NEC, the rand may well capitalise.”

The ANC is likely to give a public report of the weekend meeting this week.

COMMENTS   2

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

Reasonable people need to box clever here and support CR .
If those other gangsters get him out SA is in for a heap of pain

The ANC power struggle is all about who can steal what quicker….in my opinion.
I’m not interested in the giving any more of them a chance to continue stealing from taxpayers.
If leaving a sinking ship is not an option for most South Africans, then we have no choice but to keep the ship afloat.
The only way to do this, in my opinion,is to turn off the tap into the trough. No money to steal = no political infighting.
A tax revolt maybe?
A rates revolt in ANC held municipalities?
We’ve survived the fallout before under apartheid, when the world cut us off from access to the global economy – and it worked!
South Africans ( of all races) are innovative and agile.
The ANC has been corrupted, is lazy and untruthful and cannot be trusted.
Something has to change.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: