The rand was slightly weaker against the major currencies on Tuesday before midday, following Public Protector Busisiwe Mkhwebane’s remarks that the Reserve Bank needed to change its mandate. The local currency shed up to 2% on Monday after Mkhwebane said the Bank must change its mandate from protecting the value of the rand to improving SA’s socioeconomic conditions. The Bank said that the remedial action prescribed by the public protector fell outside her powers and was unlawful. Rand Merchant Bank analyst John Cairns said it was not expected that Mkhwebane’s recommendation would cause a further major fall-out in the rand on Tuesday, but trade was "likely to remain jittery" while there were also continued pressures from a stronger dollar. The dollar gained on the euro following the increase in interest rates by the US Federal Reserve last week, but was slightly weaker on Tuesday in midday trade.
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