The rand was weaker against the dollar on Monday afternoon‚ as the greenback regained lost ground against the euro.
The dollar has struggled to gain momentum following the passing of President Donald Trump’s tax reform plan in Congress‚ in late December.
“Given the downside we’ve seen over the last month‚ we could see a small correction‚ although as of yet there doesn’t appear to be too much appetite for the upside‚” Oanda analyst Craig Erlam said.
Weaker than expected US nonfarm payroll data on Friday caused the dollar to remain at about $1.20 to the euro. The local currency usually tracks movements in the euro.
The rand was also under pressure as expectations faded that President Jacob Zuma would be removed as the country’s president any time soon. This was unlikely to happen before his address at the opening of Parliament in February.
Newly elected ANC leader Cyril Ramaphosa’s January 8 statement is set to be delivered on January 13. The ANC’s national executive committee will meet on Wednesday to discuss the process around the envisaged state-capture inquiry.
According to reports this will be made public on Saturday.
At 3pm the rand was at R12.4046 to the dollar from R12.3303‚ at R14.8539 to the euro from R14.8309 and at R16.809 to the pound from R16.7221.
The euro was at $1.1973 from $1.203.
by Maarten Mittner – BusinessLIVE