Rand firms 1% against the pound on Brexit concerns
Markets are jittery as investors fret that UK Prime Minister Theresa May’s draft Brexit deal will not get through parliament
The rand was firmer against major global currencies on Tuesday afternoon, faring best against the pound, despite disappointing local data and poor global sentiment. The pound was under pressure due to continued uncertainty over Prime Minster Theresa May’s draft Brexit deal, with May facing stiff opposition from members of her party. May is now facing the unenviable task of getting the UK parliament to approve the deal that essentially binds the UK to most of the EU’s trade rules without giving the country any representation in the European parliament, said BK Asset Management MD Boris Schlossberg. Earlier, the business confidence index, from Rand Merchant Bank (RMB) and the University of Stellenbosch’s bureau for economic Research (BER), fell to 31 points in the fourth quarter from 34 in the third. Sentiment declined in two of the five sectors, with RMB saying on Tuesday if it had not been for disappointing new vehicle sales, confidence would have edged higher. Global headwinds were...
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