Rand slightly weaker as dollar regains lost ground against the euro
The rand was slightly weaker on Monday morning, as the local currency was unable to hold on to the gains made on Friday, when it firmed below R14 to the dollar.
The dollar regained lost ground against the euro.
Zimbabwean President Robert Mugabe defied expectations at the weekend and refused to resign, throwing the country into renewed political turmoil. Instead, Mugabe said he would preside over his party’s congress in December, even though the ruling Zanu (PF) party had removed him as its leader.
Exotix Capital analyst Hasnain Malik said the longer Mugabe delayed his exit, the less orderly it was likely to be.
He said a full blown coup in Zimbabwe was now possible, as well as renewed opposition from the Southern African Development Community (Sadc) and the AU.
At 8.34am the rand was at R14.0404 to the dollar from R14.0028, at R16.4849 to the euro from R16.5093 and at R18.5502 to the pound from R18.5108.
The euro was at $1.1741 from $1.179.
Sue Trinh, head of Asian forex strategy at RBC, said the euro’s value did not properly reflect political risk in the region.
The falling apart of German coalition talks added to her view that the euro was likely to fall further against the dollar, Dow Jones Newswires reported.
On Friday, the rand was at a two-week high to the greenback, tracking a firmer euro.
The dollar stumbled on news that top officials from President Donald Trump’s election campaign had been subpoenaed in a Russia probe, the newswires reported.