Picture: THINKSTOCK
Picture: THINKSTOCK

The rand was steady on Thursday morning, drifting away from firmer levels seen earlier in the week, after Deputy President Cyril Ramaphosa’s electoral victory as the ANC’s president.

The rand strengthened to the R12.57/$ level on Monday evening but lost the gains overnight on Wednesday after the ANC passed a resolution at its elective conference that it would try to change the Constitution to allow the expropriation of land without compensation.

While the market welcomed Ramaphosa’s victory, most analysts said it would be the policies that were decided on at the conference that would determine if the rand would hold on to its gains.

Sasfin Securities fixed-income trader Alvin Chawasema said the land expropriation headline "knocked the rand off its perch", with the currency’s direction, expected to also drive the bond market, albeit in thinned-out trade.

At 9.31am the rand was at R12.7347 to the dollar from R12.7452, at R15.1106 to the euro from R15.1315 and at R17.0034 to the pound from R17.0367.

The euro was at $1.1866 from $1.1872.

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