SA rand rattled

JOHANNESBURG. — The rand was on shaky ground yesterday morning, at the start of a fairly busy week in terms of local economic data.

The local currency was vulnerable to news about the new version of the Mining Charter, which has been a subject of controversy since it was gazetted last week.

The charter, which requires mining groups to increase their black ownership from 26 percent to 30 percent over 12 months, resulted in a sharp decline in some of the JSE-listed mining shares, which contributed to a drop in the rand last week.

The rand was hovering near 12,81 to the dollar yesterday morning, after strengthening to 12,56 to the dollar last week, its best level since March.

Markets will also monitor the release of the Reserve Bank’s quarterly bulletin today, in particular figures on the country’s current account.

Trading Economics expects the current account deficit to have risen to R90 billion in the first quarter, from R76 billion in the fourth quarter.

Global factors will also probably play a key part in the currency markets, with Brexit talks scheduled to start yesterday, while a US Federal Reserve official’s address at a business roundtable will be keenly watched for clues on future Fed policy.

At 8.35am, the rand was at 12,8090 to the dollar, from 12,7844 to the dollar. It was at 14,33 to the euro from 14,35 and at 16,39 to the pound from 16,31. The euro was at $1,1188 from $1,1208.

BDLive.