Rand slips as investors await news on Cyril Ramaphosa’s cabinet
The dollar is building on Friday’s gains against major currencies, lifted by stronger manufacturing and services PMI data
The rand was marginally weaker on Monday morning, with investors awaiting news on President Cyril Ramaphosa’s new cabinet members.
The ANC said President Cyril Ramaphosa would announce his new cabinet in the coming days after negotiations over positions with other political parties that had joined the government of national unity (GNU).
Business Day understands that the president was initially scheduled to announce the 30 cabinet members on Sunday but discussions among parties were ongoing.
“The rand opened the new week softer on the back of the firmer dollar and lack of news on the makeup of the new cabinet,” said TreasuryOne currency strategist Andre Cilliers, adding that the dollar was building on Friday’s gains against the major currencies, boosted by stronger manufacturing and services PMI data on Friday.
“We have expected some consolidation in the rand at current levels given the recent strong run, which saw it outperform all other currencies,” Cilliers said.
At 10.35m, the rand had weakened 0.25% to R18.0553/$ and 0.83% to R19.3806/€, while it had strengthened 0.59% to R22.6233/£. The euro was 0.24% firmer at $1.0717.
Globally, investors continue watching data for insights on the future path of inflation and the US Federal Reserve’s interest rates.
May’s personal consumption expenditure (PCE) data, the Federal Reserve’s preferred inflation gauge, will be released on Friday. Markets are hoping the PCE index will show some signs of moderation in US inflation.
At 11.40am, the JSE all share had gained 0.54% to 80.196.79 points and the top 40 was up 0.71%.
At the same time in Europe, the FTSE 100 was up 0.36%, France’s CAC 0.62% and Germany’s DAX 0.59%.
Earlier in Asia, the Shanghai Composite lost 1.17%, while Japan’s Nikkei gained 0.54%. Hong Kong’s Hang Seng was little changed.
In the commodities market, gold gained 0.39% to $2,331.07/oz and platinum 1.11% to $1,007/oz. Brent crude was 0.42% firmer at $85.43 a barrel.
With Thando Maeko