JOHANNESBURG (Reuters) – South Africa’s rand fell on Thursday as investors turned cautious ahead of newly re-elected President Cyril Ramaphosa’s cabinet appointments under a unity government.
At 1521 GMT, the rand was trading at 18.0625 against the dollar, about 0.6% weaker than its previous close. The rand had weakened more than 1% against the dollar earlier in the day.
“Today’s depreciation could indicate some profit-taking on the edge as markets are cautious ahead of newly re-elected President Cyril Ramaphosa’s cabinet appointments,” Shaun Murison, senior market analyst at IG, told Reuters.
The rand’s longer-term momentum appeared to be of further upside, he added.
The local currency had risen to a nearly 11-month high of 17.9200 on Wednesday after five political parties joined the African National Congress last week in forming a unity government following a general election. had lost its absolute majority.
The dollar also gained against a basket of currencies on Thursday, “so the weakening of the rand is partly due to macro factors rather than local factors,” Murison said.
On the stock market, the Top 40 index closed 0.72% lower.
South Africa’s 2030 government bond was weaker, with yields rising 4 basis points to 9.785%.
