Rand edges lower as dollar stabilises after slumping to three-year lows
The rand edged lower on Tuesday morning, as the dollar appeared to stabilise after falling to a three-year low when measured against a basket of other major currencies. Traders were also keeping a close watch on local politics, which has been the primary driver of the local currency for weeks. Speculation is rife that President Jacob Zuma, whose tenure has been mired in controversy, may not serve out his full term. The speculation came after the ANC elected Cyril Ramaphosa as the new party leader in December, creating what some call two centres of power. This dynamic could disrupt policy and economic progress, leaving SA in a state of policy paralysis, said Momentum Investments analysts Herman van Papendorp and Sanisha Packirisamy. "Potential trade-offs between key policy objectives supported by two factions could compromise SA’s economic trajectory," they said in an e-mailed note. Policy paralysis could complicate SA’s already-tenuous fiscal position and lead to further sovereign c...
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