Rand retains overnight gains amid Brexit drama
The rand gained 1.3% overnight, but is trading slightly weaker on Tuesday market, as investors eye Brexit developments
The rand was stable against major global currencies on Tuesday morning, holding onto most of its overnight gains.
On Monday, emerging-market currencies, including the rand, had recovered sharply from losses they sustained on Friday.
The concern over global growth that prompted last week’s sell-off has abated a little, analysts said. Risk events continue to loom, however, and the local focus remains on the Reserve Bank interest rate decision on Thursday, and the Moody’s Investors Service credit-rating report on Friday.
International focus remains on Brexit, with the pound gaining slightly overnight against the euro after UK legislators voted to take control over the Brexit process from UK Prime Minister Theresa May.
A series of votes on Brexit are now expected to take place on Wednesday, with the pound strengthening a little against the rand on Tuesday morning.
“The end could be near for May,” said Oanda analyst Edward Moya.
At 9.50am the rand was 0.19% weaker at R18.92/£, while remaining flat at R14.3147/$ and at R16.1971/€.
The benchmark R186 government bond was bid at 8.725% from 8.715%.