CAPE TOWN - The rand was trading at R14.96 to the dollar at 09:00 on Monday as news broke that Minister Nhlanhla Nene reportedly asked President Cyril Ramaphosa to be let go as Finance Minister.
The rand was trading at R14.80 earlier before the markets caught wind of Nene's possible resignation.
The rand traded stronger against the US dollar during Friday’s European trading session according to NKC Research.
The South African currency recovered somewhat following sharp losses in the week due to higher US bond yields.
On Friday US bond yields eased somewhat as data showed that US employment growth was weaker than expected in September. At the close of local trade, the rand quoted 0.7 percent stronger at R14.75/$, after trading in the range of R14.68/$ - R14.88/$. The rand traded slightly weaker this morning. Expected range today R14.70/$ - R15.00/$.
Andre Botha, a senior currency dealer at TreasuryONE, said on Friday that Nene's testimony at the Zondo commission did little to impact the rand.
"The testimony before the Zondo commission by Nene did not reveal any of the fears that the rumour mill led us to believe. The testimony by the Finance Minister hardly moved the rand and left the currency unscathed. However, better than expected employment data out of the US and Fed Chairman Powell turning a little more hawkish has driven up Treasury Yields in the US and has placed EM’s under pressure again," Botha said.
BUSINESS REPORT ONLINE