SA rand weakens

JOHANNESBURG. — The rand was weaker against major global currencies yesterday morning, with several factors at play.

On Monday Public Protector Busisiwe Mkhwebane backed down on her proposal to have the constitutional mandate of the Reserve Bank changed. Following her comments in June, a was proposal made at the ANC’s policy conference last week to nationalise the Reserve Bank. This led to the rand losing up to 1,44 percent against the dollar.

TreasuryOne dealer Gerard van der Westhuizen said although Mkhwebane’s comments damaged foreign investors’ confidence and led to a depreciation in the rand, the local currency failed to pull back after the public protector made a U-turn on her proposal to change the Reserve Bank’s mandate.

Nedbank analysts said the week got under way with the rand trading around 13,30 to the dollar — albeit in limited trading volumes — but it did manage to touch a best level of 13,28 to the dollar on Monday.

“However, comments (at Monday’s Luthuli House briefing) regarding the wish to have the control of the budget moved to the office of the president brought this to a rapid halt and thereafter the local unit traded on the back foot.”

At 9.01am‚ the rand was at 13,5824 to the dollar from Monday’s 13,4860‚ at 15,4757 to the euro from 15,3712 and at 17,4987 to the pound from 17,3678. The euro was at $1,1393 from $1,1399.