The rand was little moved on Thursday morning, showing signs of consolidation after racing to a month high against the dollar earlier in the week. The local currency was, however, weaker against the pound, which stood tall against the basket of currencies amid signs that the UK was making progress in talks to leave the EU. Rand Merchant Bank currency strategist John Cairns said in an e-mailed note that the rand could weaken in a short term, given that it had strengthened a lot within a relatively short time. Local politics has increasingly taken centre stage over the past few weeks, outweighing global forces in shaping sentiment towards the local currency. With less than a month to go before the ANC’s elective conference — widely billed as a make-or-break event — analysts expect the rand to be volatile. The ruling party will elect a new leader to replace President Jacob Zuma, whose term as party leader comes to an end in December. The new leader is likely to shape policy direction f...
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