Rand remains on weakening path

The rand was weaker against major currencies shortly before midday on Thursday‚ following the ANC’s proposal on Wednesday to nationalise the Reserve Rank.

The rand was weaker against major currencies shortly before midday on Thursday‚ following the ANC’s proposal on Wednesday to nationalise the Reserve Rank.Picture FILE

The local currency shed about 2% on Wednesday‚ shortly after the proposal‚ which was made at the party’s national policy conference‚ sparked concern about the Bank’s independence.

However‚ the rand was able to recover some of its losses‚ ending the day 1.44% weaker against the dollar.

Rand Merchant Bank analyst John Cairns said the rand had overreacted to the proposal‚ but it was unlikely that the losses would be recouped rapidly.

At 11.32am the rand was at R13.4415 to the dollar from R13.3835 and at R15.2724 to the euro from R15.1940 and at R17.3932 to the pound from R17.3130.

The euro was at $1.1362 from $1.1352.

“It is clear the market is still very nervous and it is going to take a lot to get the rand to gain and very little to get the rand to weaken again‚” said Cairns.

-BusinessLIVE

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