Rand weaker as market prices in early response to Zuma’s speech

The rand was weaker at midday on Thursday‚ despite a softer dollar‚ as investors await President Jacob Zuma’s state of the nation address.

The dollar weakened following Federal Reserve chairwoman Janet Yellen’s first day of testimony to Congress and crossed the important $1.13 level to the euro earlier on Ms Yellen’s dovish sentiment.

The rand usually firms on dollar weakness‚ but negative sentiment surrounding Mr Zuma’s speech is hampering the local currency.

At 11.25am‚ the rand was at R15.9953 against the dollar from a previous close of R15.8836.

Against the euro‚ the rand was at R18.1392 from R17.9428 and was at R23.0866 against the pound from R23.0800 previously.

The euro was at $1.1340 from $1.1294 previously.

TreasuryOne’s head of dealing‚ Wichard Cilliers‚ said Ms Yellen had expressed concern over the recent turmoil in financial markets but did not rule out further rate hikes this year.

However. she did suggest that any hikes this year may need to be delayed.

"This is in light of the current capricious market environment as the mood swings from optimism to negativity at the flip of a coin‚" Mr Cilliers said.

Mr Zuma’s speech is due to commence at 7pm.

- TMG Digital/BDlive