Rand trades flat overnight
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THE rand benefited from easing fears surrounding tapering, lifting risk currencies, although concerns surrounding global growth weighed, according to NKC Research.
Markets interpreted the soft US employment reading of Friday as indicative of a receding risk that tapering will kick off this year.
On domestic soil, the news flow included former president Jacob Zuma’s release on medical parole on Sunday. He has served less than two months of the 15-month sentence the Constitutional Court handed down on June 29 after finding him guilty of contempt of court.
The Department of Correctional Services (DCS) did not give details of Zuma’s condition in its communications. While opposition parties requested the decision to be reviewed, we believe that this has little prospect of success and Zuma is expected to serve the remainder of his term, according to the DCS, “in the system of community corrections whereby he must comply with specific set of conditions and will be subjected to supervision”.
This is interpreted to mean house arrest, but he will be allowed to attend his trial in Pietermaritzburg in person as he has been demanding. Zuma’s parole will be seen as another example of preferential treatment for powerful members of the ANC.
At the close of local trade, the rand quoted 0.58 percent stronger, at R14.24/$, after trading in range of R14.24/$ to R14.36/$. The rand traded flat overnight. The expected range of the rand against the dollar today is R14.10/$ to R14.40/$.
BUSINESS REPORT ONLINE