The rand was slightly firmer against the dollar on Monday morning but failed to strengthen to the levels seen last week before calls were made to nationalise the Reserve Bank.
Analysts said the rand overreacted to the news‚ shedding up to 2% to the dollar just after the call was made last Wednesday. The rand closed at R13.38/$ on Wednesday.
Public Protector Busisiwe Mkhwebane’s call to have the Bank’s mandate changed‚ which was also raised at the ANC’s national executive conference (NEC)‚ has since received court opposition from Finance Minister Malusi Gigaba and speaker Baleka Mbete.
Rand Merchant Bank (RMB) analyst John Cairns said: "None of this had filtered through into local markets as the rand‚ bonds and even credit default swaps continued to languish."
Standard Bank currency trader Warrick Butler said the rand was unlikely to recover all its losses‚ as there were other external factors that drove emerging markets weaker.
The local currency showed little reaction to the US nonfarm payroll data released on Friday that showed that 222‚000 jobs were created in June‚ beating the expectation of 174‚000. Hourly earnings climbed only 0.2% on the month‚ below the expected 0.3%.
Nedbank analysts said: "Although the data indicated a continued increase in the number of jobs created‚ the extent of the move to the upside was limited‚ and by the time the local market closed‚ the rand was once again trading at the opening levels."
At 9.01am the rand was at R13.3454 to the dollar from Sunday’s R13.4073‚ at R15.2133 to the euro from R15.2756 and at R17.2079 from R17.2643.
The euro was at $1.1399 from $1.1397
-BusinessLIVE
Source: TMG Digital.
Rand battles to recover from calls to nationalise the Reserve Bank
Analysts said the rand overreacted to the news‚ shedding up to 2% to the dollar just after the call was made last Wednesday. The rand closed at R13.38/$ on Wednesday.
Public Protector Busisiwe Mkhwebane’s call to have the Bank’s mandate changed‚ which was also raised at the ANC’s national executive conference (NEC)‚ has since received court opposition from Finance Minister Malusi Gigaba and speaker Baleka Mbete.
Rand Merchant Bank (RMB) analyst John Cairns said: "None of this had filtered through into local markets as the rand‚ bonds and even credit default swaps continued to languish."
Standard Bank currency trader Warrick Butler said the rand was unlikely to recover all its losses‚ as there were other external factors that drove emerging markets weaker.
The local currency showed little reaction to the US nonfarm payroll data released on Friday that showed that 222‚000 jobs were created in June‚ beating the expectation of 174‚000. Hourly earnings climbed only 0.2% on the month‚ below the expected 0.3%.
Nedbank analysts said: "Although the data indicated a continued increase in the number of jobs created‚ the extent of the move to the upside was limited‚ and by the time the local market closed‚ the rand was once again trading at the opening levels."
At 9.01am the rand was at R13.3454 to the dollar from Sunday’s R13.4073‚ at R15.2133 to the euro from R15.2756 and at R17.2079 from R17.2643.
The euro was at $1.1399 from $1.1397
-BusinessLIVE
Source: TMG Digital.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos