Rand recoups some losses but remains vulnerable

The rand recouped some of its earlier losses against the dollar in midday trade on Friday‚ but remained vulnerable as political uncertainty continued to weigh on sentiment.

Public Protector Thuli Madonsela was prevented from releasing her report on state capture‚ by the High Court in Pretoria on Friday morning‚ while uncertainty over fraud charges laid against Finance Minister Pravin Gordhan continued to contribute to nervousness in the local markets.

In a last-minute attempt on Thursday‚ President Jacob Zuma and Co-operative Governance and Traditional Affairs Minister Desmond van Rooyen approached the courts to prevent the release of the report.

The President was implicated in the interim report on complaints of an inappropriate relationship between state officials and the controversial Gupta family.

RMB Africa analyst Neville Mandimika said the rand continued to trade with a high political-risk premium.

“Amazingly the rand has been fairly stable despite the increased uncertainty‚” said Mandimika.

At 12.04pm the rand was at R14.2052 to the dollar from R14.2558 on Thursday.

It was at R15.6518 to the euro from R15.7632 and R17.3457 to the pound from R17.4712.

The euro was at $1.1019 from $1.1057 previously.




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