The rand extended its gains against hard currencies on Monday afternoon‚ after National Assembly speaker Baleka Mbete ruled the vote of no confidence against President Jacob Zuma would be conducted via secret ballot.
In volatile trade on Monday‚ the rand had reversed earlier losses and was firmer to the dollar shortly before Mbete spoke.
After the pronouncement the rand gained more than 15c to the dollar‚ and at 3.56pm was at R13.1985 from R13.4183.
At the same time‚ the rand was at R15.5638 to the euro from R15.8176 and at R17.1946 to the pound from Sunday’s R17.5197.
The euro was at $1.1791 from $1.1772.
Analysts had said it was unlikely the speaker would rule that the vote be secret. Even if it were‚ they said‚ Zuma was unlikely to be removed. But investor focus was squarely on local factors this week due to the absence of economic data‚ they said.
Ratings agency Moody’s may release its latest review of SA’s local and foreign sovereign credit status on Friday. The agency is widely expected to keep SA one notch above junk status‚ but with a negative outlook.
This could be a watershed week for the rand with the possibility of high volatility in the currency‚ said TreasuryOne analysts.
- BusinessLIVE
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