Rand mixed as UK wins Brexit concessions
All eyes are on a crucial vote in the UK parliament, where Prime Minister Theresa May’s draft Brexit agreement will be put before MPs
The rand was mixed against major global currencies on Tuesday morning, as the pound gained after the EU offered further concessions to UK Prime Minister Theresa May.
The EU has given legal assurances that the UK can exit the customs union if a new trade deal is not reached in a timeframe that satisfies the UK parliament, which may be enough to placate rebellious Conservative Party members.
May has faced rebellion within her ranks over the issue, with some maintaining that the UK could be locked into the EU’s economic orbit.
At 9.45am the rand was 0.34% firmer at R14.2855/$, 0.22% stronger at R16.0894/€, while remaining flat at $18.895/£. The euro was 0.12% weaker at $1.1263.
The rand could benefit from the Brexit deal passing, as this would reduce uncertainty over the issue, said TreasuryOne senior currency dealer Andre Botha.
The vote should take place at about 10pm local time, well after local markets close.