The rand among world’s best performers, despite political risk
Analysts are extolling the rand's virtues, noting it is 'one of those currencies that has very little political Donald-Trump-tweet-exposure'
Investors are developing thick skins when it comes to political risk in SA. The currency is among the world’s 10 best performers this year, despite speculation that President Jacob Zuma may fire Finance Minister Pravin Gordhan. Just 14 months ago, Zuma sent the currency crashing when he removed the respected Nhlanhla Nene from the post. The rand barely moved when Zuma’s annual state of the nation address in Parliament last week sparked violence with riot police firing stun grenades outside. Now, Ebury Partners, the top rand-dollar forecaster over the past four quarters, thinks it’s unlikely Zuma will put markets through another "Nenegate". Investors are more concerned about faster-than-expected rate increases in the US and President Donald Trump’s trade policies, although those risks have improved the outlook for precious metals as traders seek safe havens. This is coupled with general positive sentiment across commodities as companies benefit from rising pricing across the sector, ...
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