The rand steadied on Tuesday morning, a day after staging a U-turn that caught many off guard. The rand rallied to a five-week high to the dollar, just days after S&P Global Ratings lowered SA’s rand-denominated debt to subinvestment grade. The strong gains in the local currency coincided with news that government planned to remedy its public finances by cutting expenditure and raising taxes, measures it hopes will ward off any credit rating downgrades. Markets were also pinning their hopes in Deputy President Cyril Ramaphosa, who is campaigning to be next ANC leader when the ruling party holds its elective conference in December. "The rand would strengthen far beyond current levels if Ramaphosa wins. Our formal target is R13.50/$ but based on current starting levels, figures below R13.00/$ become possible," Rand Merchant Bank currency strategist John Cairns said in an e-mailed note. "But hold your horses: while Ramaphosa’s odds have risen, he is certainly not a certain victor." Ram...
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