Rand weaker as focus shifts to Sona
The currency was the worst performing among its emerging-market peers tracked by Bloomberg
The rand was weaker on Thursday morning and was the worst performing among its emerging-market peers as investors shift their focus to the state of the nation address (Sona).
RMB analyst Nema Ramkhelawan-Bhana said despite the rand “having strengthened at a somewhat unrealistic pace in the first-half of the week”, this is the likely the “fulcrum around which the currency will trade”.
At 10.40am, the rand had weakened 0.46% to R14.9224/$ after closing at R14.85440 on Wednesday. It had weakened 0.63% to R16.2430/€ and 0.56% to R19.3477/£. The euro had firmed 0.12% to $1.1.0884.
The R2030 government bond was little changed at 8.88%.
Gold added 0.55% to $1,574.40/oz and platinum 0.74% to $965.61/oz. Brent crude 1.65% to $55.36 a barrel.
Investors will be closely watching President Cyril Ramaphosa’s Sona this evening for any signs on the government’s plans to revive economic growth. The market will also be on alert for any indications about what could be included in finance minister Tito Mboweni’s budget speech later in the month.