The rand was marginally weaker against the dollar on
Tuesday morning amid speculation of a possible Cabinet reshuffle and
policy developments in the US.
The local currency started the weak weaker at R13.40 to the dollar, after having rallied to R13.20/$ last week on market jitters over the Trump administration. Talk of a possible Cabinet reshuffle that could see former Eskom CEO Brian Molefe replace Pravin Gordhan as finance minister put further pressure on the rand.
Rand Merchant Bank’s chief currency strategist, John Cairns, said the market would be able to handle a minor Cabinet change with only mild losses but "any changes that would affect Treasury would be another story".
He said the offshore environment also provided a neutral to mildly negative environment for the rand.
US President Donald Trump fired acting attorney-general Sally Yates after she refused to execute his order to suspend immigration from seven countries.
Despite relatively upbeat economic data from the US, the market would remain wary about Trump doing what he promised to do, said Cairns.
At 9am the rand was at R13.5101 to the dollar from Monday’s R13.5081. It was at R14.4438 to the euro from R14.4505 and at R16.8787 to the pound from R16.8716.
The dollar was at $1.0691 to the euro from $1.0696.
BDlive
The local currency started the weak weaker at R13.40 to the dollar, after having rallied to R13.20/$ last week on market jitters over the Trump administration. Talk of a possible Cabinet reshuffle that could see former Eskom CEO Brian Molefe replace Pravin Gordhan as finance minister put further pressure on the rand.
Rand Merchant Bank’s chief currency strategist, John Cairns, said the market would be able to handle a minor Cabinet change with only mild losses but "any changes that would affect Treasury would be another story".
He said the offshore environment also provided a neutral to mildly negative environment for the rand.
US President Donald Trump fired acting attorney-general Sally Yates after she refused to execute his order to suspend immigration from seven countries.
Despite relatively upbeat economic data from the US, the market would remain wary about Trump doing what he promised to do, said Cairns.
At 9am the rand was at R13.5101 to the dollar from Monday’s R13.5081. It was at R14.4438 to the euro from R14.4505 and at R16.8787 to the pound from R16.8716.
The dollar was at $1.0691 to the euro from $1.0696.
BDlive
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