Rand slips, but holds on to weekly gains
The rand was a little weaker on Friday morning, but held on to relatively hefty weekly gains against the dollar at the end of a week that has been largely dominated by offshore events.
The local currency has benefited from a broad weakness in the dollar, as well as favourable sentiment towards emerging markets. The uncertainty about the pace of US interest rate increases has put pressure on the dollar. The dollar index is on track for its second back-to-back weekly loss.
"The rand has gained momentum and is re-establishing the strengthening trend we saw before the Cabinet reshuffle," TreasuryOne currency dealer Phillip Pearce said.
President Jacob Zuma fired Pravin Gordhan as finance minister in a controversial Cabinet reshuffle that sent the rand to R13.95/$ before recovering.
"It seems surreal to see the local unit gain despite the downgrades and the political noise coupled with the uncertainty regarding the direction the National Treasury will now take," Pearce said.
At 9.37am the rand was at R13.1564 to the dollar from R13.1386. The rand was at R14.1138 against the euro from R14.0836 and at R16.8591 against the pound from R16.8375
The euro was at $1.0727 from $1.0719