South African rand edges lower, focus on president’s cabinet picks
2024.06.20 04:37
JOHANNESBURG (Reuters) – edged lower early on Thursday, as investors turned cautious ahead of newly re-elected President Cyril Ramaphosa’s cabinet appointments under a unity government.
At 0726 GMT, the rand traded at 17.9850 against the dollar, 0.15% weaker than its previous close.
The local currency had strengthened to a near 11-month high of 17.9200 on Wednesday after five political parties joined the African National Congress last week in forming a government of national unity, after it lost its absolute majority in general election.
“Markets will now be watching President Ramaphosa’s cabinet appointments with interest,” said Andre Cilliers, currency strategist at TreasuryONE.
There is no major economic data due in South Africa till next Thursday when Statistics South Africa will release monthly producer inflation figures.
On the stock market, the Top-40 index was up 0.2% in early trade.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 4 basis points at 9.785%.
