Rand falls against the US Dollar

Reading Time: < 1 minute

The fall of the rand sees it briefly touching the R19 mark against the US dollar around midday Thursday.

The local unit remains vulnerable to political uncertainty arising from possible coalition talks by the ANC.

The party is holding high-level internal talks to discuss its governance options.

Sanlam Portfolio Manager Roy Mutooni, says, “Especially since the election day, the rand has weakened, when typically it would have strengthened. So, clearly, there is a risk element embedded within the currency.”

Mutooni says he does not believe the markets are trying to influence coalition talks.

“I don’t think the markets are calling for one or the other. I think it’s just that this decision is up in the air and has been for some time. We still have another week so it is still some time to go,” he says.

Meanwhile, African National Congress (ANC) Secretary General Fikile Mbalula has dismissed the protest outside their Special NEC meeting in Boksburg as misplaced and based on disinformation.