Rand flat on position squaring ahead of France’s election
The rand has been resilient since the Cabinet reshuffle, which led to ratings downgrades; analyst says SA is in the eye of the storm and markets are quiet — for now
The rand was flat against the dollar on Friday afternoon in quiet trade as dealers squared off their positions. The local currency has shown resilience throughout the week following the Cabinet reshuffle, which led to slump in the local currency and a credit rating downgrade.
TreasuryOne dealer Phillip Pearce said it felt as though SA was in the eye of the storm as markets had quietened for now.
Global investors now await the French election on Saturday. Last minute jitters were triggered after the terrorist attack on Thursday night, which caused some global risk aversion.
Rand Merchant Bank analyst John Cairns said the euro seemed likely to see ongoing volatility as election buzz hits a fever pitch. Large euro swings could also be expected on Monday as the election results start to trickle in.
At 3.39pm, the rand was at R13.1434 to the dollar from R13.1386; R14.0693 to the euro from R14.0836; and at R16.8101 to the pound from R16.8375.
The euro was at 1.0704 to the dollar from 1.0719.