Rand keeps most of its gains after Ramaphosa win
The rand was slightly firmer against the dollar in volatile trade on Tuesday afternoon as the market spent the day digesting Deputy President Cyril Ramaphosa’s electoral victory on Monday.
Ramaphosa won the ANC leadership race against MP Nkosazana Dlamini-Zuma, an outcome favoured by the market.
Head of international banking at Absa Daniel Buntman said the victory could not have come at a better time. Although trade in the rand has been volatile, it remained on its firming trend, he said.
Buntman said the rand, which is notoriously volatile, could swing again without much warning, depending on international investors’ appetite for risk. "Its recent positive movement does indicate the market has welcomed Ramaphosa’s appointment, yet there is no guarantee this trend will continue, and [the currency] could fall out of favour again."
At 3.03pm the rand was at R12.7375 to the dollar from R12.7622‚ at R15.0623 to the euro from R15.0373 and at R17.0213 to the pound from R17.0756.
The euro was at $1.1825 from $1.1782.