CAPE TOWN - The rand heads into this week with a dark cloud of local politics hanging over it as the reaction from the land expropriation decision last week had a crippling effect putting the currency on the back foot for most of the week.
TreasuryONE chief currency dealer Andre Botha said it was likely that this issue would be at the top of the agenda for this week’s a cabinet meeting.
“The market is waiting for some clarity regarding the issue and should the details continue to be murky we could see the rand on the back foot, as uncertainty plus emerging markets don’t gel,” said Botha.
At 5pm the domestic currency was bid 11c weaker than Friday’s same time bid at R13.41 a dollar. Against the pound sterling the rand was 4c softer at R17.35 and to the euro, the currency eased 8c to R15.50.
Peregrine Treasury Solutions corporate treasury manager Bianca Botes said the land debate was causing some uncertainty in both local and global markets as no investor liked uncertainty and even less so in a time of a risk-averse global backdrop.