#TheRand breaks through R13

File picture: Waldo Swiegers, Bloomberg

File picture: Waldo Swiegers, Bloomberg

Published Apr 24, 2017

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Johannesburg - Twitter is abuzz with news that the rand

has recovered substantially.

Just after lunch, the rand was trading at R12.95 to the dollar.

This is below the psychological barrier of R13, and well

off its recent lows.

After President Jacob Zuma recalled then Finance Minister

Pravin Gordhan from an international roadshow, which was followed by his axing

during a Cabinet reshuffle at the end of March and SA being downgraded to junk

by S&P and then Fitch, the rand lost about 10 percent.

However, some commentators note that the rand itself is

not strong.

Rather, they say, political instability in the US is

leading to that currency declining, which is bolstering the local equivalent.

It's not the Rand getting stronger,its the dollar getting weaker, don't ever play yourself #GlobalWave

— ParadoX! (@LuthoNombewu) April 24, 2017

Gordhan was replaced by former Home Affairs Minister

Malusi Gigaba, who is set to attend a roadshow with international investors and

rating agencies.

Meanwhile, Reuters reports that emerging assets shifted

up a gear on Monday as markets cheered the French election results, pushing

developing stocks to a near-three week high and sending most emerging

currencies surging against the dollar and euro.

The Rand has strengthened from R13.9 two weeks ago to R12.8 today. Finance Minister @mgigaba is hard at work increasing investor confidence.

— South African Gov (@GovernmentZA) April 24, 2017

Sunday's election saw centrist and market favourite

Emmanuel Macron take a big stride towards the French presidency, winning the

first round and lining up a showdown against far-right leader Marine Le Pen in

a May 7 run-off vote, the wire service reports.

Victory for the pro-European Union ex-banker in the

opening round soothed nerves over the future of the bloc and its single

currency, and whetted investors' appetite for riskier assets, it says.

BUSINESS REPORT

ONLINE

 

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