Rand weakens as focus turn abroad

South Africa's rand weakened early on Wednesday, as investors turned their attention abroad after president Cyril Ramaphosa's re-election as leader of the governing African National Congress (ANC) party.

21 Dec 2022

South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg, File. Reuters/Siphiwe Sibeko

At 0647 GMT, the rand traded at 17.3400 against the dollar, 0.2% weaker than its previous close.

"As South Africa moves on from the ANC's elective conference and the perceived risks abate, the focus once again turns abroad", ETM Analytics said in a research note, flagging the ongoing war in Ukraine, the recommendation of charges against Donald Trump and the rapid spread of Covid-19 through China.

Ramaphosa defeated former health minister Zweli Mkhize in a two-horse race on Monday, clearing the way for him to contest the presidency again at 2024 elections.

On the stock market, the Top-40 and the broader all-share indexes rose around 0.5% in early trade.

The government's benchmark 2030 bond was weaker in early deals, with the yield up five basis points to 10.205%.