Rand at one-month high against pound, as Brexit risk continues
A no-confidence vote against UK Prime Minister Theresa May poses a risk later in the day, with sterling remarkably stable after her historic defeat
The rand was slightly firmer against major global currencies on Wednesday morning, extending slight gains made against the pound after UK Prime Minister Theresa May's crushing parliamentary defeat on Tuesday. UK MPs voted overwhelming to reject May's draft Brexit deal, although after some volatility sterling has settled at roughly where it was before the vote. The pound had, in fact, rallied, despite the margin of the defeat. Analysts attributed this to the lack of clarity on what would happen next. At 10am the rand was flat at R17.663/£, 0.2% stronger at R15.651/€ and flat at R13.7332/$. The euro was 0.14% weaker to the dollar at $1.1397. A no-confidence vote in Theresa May's leadership is expected to take place at 9pm South African time on Wednesday, although she is expected to retain her position. May's departure, however, would prompt a general election, which analysts say would be negative for the pound. Should she remain at the helm, May has until Monday to come up with an alt...
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