Picture: REUTERS
Picture: REUTERS

The rand was mixed against major global currencies on Thursday morning, recovering slightly from a hefty 2.5% loss against sterling overnight.

British MPs narrowly voted to reject a no-deal Brexit on Wednesday night, setting the stage for another vote on Thursday night on whether to request an extension of the March 29 deadline to exit the EU.

The pound rallied as a result, with the rand slipping to its worst level against sterling since November 2018.

At 9.41am on Thursday it had recovered 0.13% to R19.1895/£, while weakening 0.13% to R14.449/$ and 0.11% to R16.3596/€.

At current levels, the rand was about 10%-12% undervalued against the dollar, and a strong argument could be made that this was justified, said Mercato Financial Services analyst Nico du Plessis.

The rand’s performance is likely to be subdued ahead of the national polls in May, while focus is also on the review by Moody’s Investors Service later in March, he said.

The rand is likely to trade in a range of R14.15/$-R14.55/$ on Thursday.