JOHANNESBUG -The Rand on Friday cheered the Supreme Court of Appeal (SCA) decision to dismiss President Jacob Zuma and the National Prosecuting Authority (NPA ) appeal against a 2016 decision by the High Court decision that found the NPA's decision to drop the corruption charges against Zuma that related to fraud, racketeering and money laundering was irrational.
The strength of the rand was also supported by dollar weakness and overall emerging market strength on the day. The local unit strengthened to R13.37 against the greenback after the court ruling decision was made public, from a day's high of R13.49 before it corrected to R13.41 ahead of the US.
Analysts from Investec said in a note on Friday that heading into the weekend and the dollar-rand downside momentum is intact but has run out of some steam.
“It may be due to the strong gains that have been achieved through the course of the trading week, it may be uncertainty about the ever-changing political environment and/or today’s SCA judgement on the spy tapes saga.”
“In particular we will await the NPAs response and investors will take it from there. It is a fluid environment that breeds uncertainty and persisting with any directional play against this backdrop comes with risk,” Investec said.
The rand seemed to be extending the current rally against the dollar which initiated on Tuesday following the six-month low of roughly 13.86 seen on Monday. Emerging markets, in general, has benefited on this much-needed relief brought about by the halt in the greenback rally.
- BUSINESS REPORT