Rand finds calmer territory after Tito Mboweni’s appointment
The market’s attention will now turn to the medium-term budget policy statement that the finance minister is due to deliver on October 24
The rand was relatively calm at R14.55 to the dollar on Wednesday morning, settling down after Tuesday’s wild mood swings on the switch of finance ministers. First Nhlanhla Nene’s resignation sent the rand sliding 1.4% to R15.05/$ from about R14.84/$, then the appointment of Tito Mboweni as SA’s new finance minister saw the currency rally 3.4% to the R14.55/$ it was trading at on Wednesday morning.
The rand was trading at R16.75 to the euro and R19.15 to the pound at 6.30am. The market’s attention will now turn to the medium-term budget policy statement (MTBPS) that Mboweni is scheduled to deliver in parliament on October 24. “The MTBPS is largely locked down and agreed by cabinet and so we see little scope for change with Mboweni’s arrival. The speech can be tuned to his personal style, of course, but less so the substance,” Intellidex analyst Peter Attard Montalto said in a note e-mailed on Tuesday. “Overall there is a complex political game going on which has claimed its fi...
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