Rand poised to firm below R12/$ on favourable political developments
The rand was poised to break through R12 to the dollar at midday on Monday as optimism about local political developments continued to buoy the local currency. It was reported at the weekend that the ANC at its national executive committee (NEC) had resolved to remove President Jacob Zuma as head of state. The process will be driven by the ANC’s top-six officials. Further developments include the appointment of the new board at Eskom, while ANC president Cyril Ramaphosa has also tightened his grip on the influential national working committee. A report from Goldman Sachs, saying the bank expected more market-friendly economic policies under Ramaphosa, also supported the rand. The rand last traded under R12 in May 2015. "The new Eskom board should provide some firing power in the arsenal of Finance Minister Malusi Gigaba as he seeks to restore foreign investor confidence," said TreasuryOne trader Gerard van der Westhuizen. At 11.31am the rand was at R12.0529 to the dollar from R12.05...
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