Rand weakens as traders wait for ANC policy

THE RAND yesterday weakened against a firm US dollar, as traders were waiting for the policy direction by the ruling ANC and US data later in the week.

By 5pm the rand was bid at R12.4183 to the dollar, 4.71 cents lower from the same time on Friday.

Reezwana Sumad, a research analyst at Nedbank, said the rand could remain range-bound unless “we see some type of political and policy clarity from the ANC.”

Gerrit van Rooyen, an economist at NKC African Economics, said the dollar was stronger against most currencies yesterday morning on the back of generally upbeat US economic data releases since the start of the year.

“However, the rand was one of the worst performing currencies against the dollar, which reflected profit taking by traders following a very strong rally over the past seven weeks,” Van Rooyen said.

He continued: “Looking ahead for the rest of the week, the outcome of the US retail sales and inflation data releases on Friday and any developments in the battle to oust President Zuma will have a bearing on the rand.”

Annabel Bishop, a chief economist at Investec Bank, said financial markets favoured Cyril Ramaphosa as president of the ANC (and SA), as it was perceived that he would deliver good governance, eradicate corruption, and follow economic policies that supported economic growth and lean towards the free market approach.