Rand’s slide against the dollar is worse than other emerging currencies’
The rand was weaker against major currencies on Wednesday afternoon, with its losses to the dollar outstripping those of its emerging-market peers. While much focus is on news from global central bankers, local data was mixed on Wednesday. The rand remained on the back foot after President Jacob Zuma’s latest Cabinet reshuffle. Analysts said while reaction to the reshuffle on Tuesday was less severe than what was seen during previous Cabinet changes, political risk was building ahead of reviews by ratings agencies, and the ANC elective congress in December. With a weak economic outlook, foreigners were likely to continue to sell off their South African equities holdings on a net basis, preventing the rand from making a marked appreciation, said Investec chief economist Annabel Bishop. Market participants will be all ears when central bankers, including US Federal Reserve officials, make speeches later on Wednesday. "With possible higher interest rates in the US than the markets’ cur...
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