Rand flat after Nhlanhla Nene admits to Gupta meetings

03 October 2018 - 15:58 By Karl Gernetzky
Nhlanhla Nene, the minister of finance, testifies at the Zondo commission of inquiry into state capture in Parktown, Johannesburg on October 3 2018.
Nhlanhla Nene, the minister of finance, testifies at the Zondo commission of inquiry into state capture in Parktown, Johannesburg on October 3 2018.
Image: Thapelo Morebudi

The rand was little changed against major global currencies on Wednesday afternoon‚ lacking major international catalysts. The local currency had earlier been under some strain from domestic politics.

Finance minister Nhlanhla Nene's testimony before the Zondo commission of inquiry was in the spotlight on Wednesday‚ with Nene admitting he had met the Gupta family at their Saxonwold complex.

Nene‚ who denied any wrongdoing‚ had previously said he had had only bumped into Gupta family members.

Calls for Nene to resign as a result of "skeletons in his closet" had put the local currency‚ and bonds‚ under some pressure on Tuesday‚ said Rand Merchant Bank bond analyst Michelle Wohlberg.

There were few major catalysts to drive the market on Wednesday‚ analysts said‚ with an absence of major headlines on issues such as Brexit‚ the Italian deficit or the ongoing trade war.

At 3pm the rand was at R14.3664 to the dollar from R14.3576‚ at R16.5658 to the euro from R16.578 and at R18.6617 to the pound from R18.6354. The euro was at $1.1531 from $1.1546.

The bid on the benchmark R186 government 10-year note was 9.095% from 9.085%.

- BusinessLIVE

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