Rand slightly softer as Brexit uncertainty escalates
Pressure on the dollar has kept the rand range-bound, although analysts warn that load-shedding is dimming the local currency's outlook
The rand was marginally softer on Tuesday morning, as markets continued to digest uncertainty around the Brexit negotiations.
The UK speaker of parliament on Monday blocked UK Prime Minister Theresa May from tabling her draft agreement for a third vote on her Brexit agreement.
This leaves May with only two days before presenting a request to EU leaders for an extension of the Brexit deadline, although analysts warned she may not have much to offer in exchange for this.
The rand was stable, however, with analysts citing recent investor disinterest in the dollar for the local currency’s recent stability.
Load-shedding poses a risk to the local currency, however, and volatility may pick up after the US Federal Reserve outlines its stance on monetary policy on Wednesday, said TreasuryOne senior currency dealer Andre Botha.
At 9.45am the rand was flat at R14.4402/$, while it had fallen 0.14% to R16.3895/€ and 0.2% to R19.1662/£. The euro was 0.11% weaker at $1.1348.
The bid on the benchmark R186 government note was last seen at 8.695% from 8.68%.