adminJOHANNESBURG. — The rand staged a slight recovery yesterday morning, helped in part by the improving global risk appetite. The local currency bought one dollar at R13,24, backing away from this week’s worst level of R13,31. Local risk factors were in back in focus after Moody’s Investors Service on Monday flagged SA’s low growth rate as one its concerns. Moody’s has the country’s debt rating just one-notch above sub-investment grade.
SA is reeling from low business and consumer confidence, which economists have warned could undermine growth prospects.
But even so, the rand has been relatively resilient so far in 2017, bailed out by bond inflows looking for better yields.
The short-term catalyst for the local currency could come from National Assembly Speaker Baleka Mbete, who is due to pronounce on whether a motion of no confidence against President Jacob Zuma will be conducted via a secret ballot. Opposition parties are hoping that a secret vote will enable disgruntled ANC MPs to vote to unseat Zuma.
At 9.09am, the rand was at R13,2385 the dollar from R13,2737‚ at R15,6672 to the euro from R15,6666 and at R17,4958 against the pound from R17,5304. The euro was at $1,1835 from $1,1802. — BDLive.
Online Reporter