Rand slightly weaker to the pound as market eyes possible May exit
UK Prime Minister Theresa May is facing a vote of no confidence later in the day, while the market is also watching for US inflation data
The rand was stable against the dollar and euro on Wednesday afternoon, but a little softer against the pound, as markets eyed a forthcoming vote of no confidence in UK Prime Minster Theresa May. The pound is holding up relatively well ahead of the vote, taking place in the evening, according to Oanda analyst Craig Erlam. “A defeat for May could see this temporary support break in spectacular fashion as the prospect of a no-deal Brexit rises,” he said. At 2.03pm, the rand was 0.28% firmer against the dollar at R14.2904 and 0.15% against the euro at R16.16944. It was 0.24% weaker against the pound at R17.9339. The euro was 0.12% stronger at $1.1332. At the same time, the bid on the benchmark R186 government bond was at 9.18% from 9.155%. Earlier, the rand found some support after confirmation the Chinese had agreed to resume soybean imports, and drop tariffs on vehicles from the US. Local data, however, was slightly downbeat, with consumer inflation climbing to 5.2% in November, slig...
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