The rand was firmer against the dollar on Wednesday afternoon, tracking a firmer euro, which gained against the greenback despite escalating tension in Spain. The Spanish government announced on Thursday it would take steps to take control of the Catalan government, after the region said it may have to unilaterally declare independence. Analysts said the effect of Catalonia had largely been restricted to Spanish stocks and equities, although any scenes of violence could change this. The euro had been very unresponsive to the developments in Spain so far, and the same was true again on Thursday, said Oanda analyst Craig Erlam. This was clearly seen as being a risk unique to Spain, rather than a problem that could develop elsewhere. The local currency came under pressure after President Jacob Zuma changed six of his Cabinet ministers on Tuesday in his second Cabinet reshuffle of 2017, although the currency’s losses were not as sharp as with previous reshuffles. Recent dollar strength ...
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