South African Rand Risks Fresh Depreciation Despite SONA's Positives

- | 7 days ago

The Rand gained on the Pound and Dollar Friday but some analysts are warning of a renewed depreciation over the coming weeks as the annual budget draws closer amid a fragile international backdrop.

South Africa's Rand rose alongside commodity prices and stock markets on Friday, pushing both the Pound-to-Rand and USD/ZAR rates down by close to half a percent as markets remained sanguine about the coronavirus.   Price action follows President Cyril Ramaphosa's state-of-the-nation address in which he noted the headwinds facing households and companies before pledging action on a number of South Africa's greatest challenges.

  "The president hit all the right notes in his annual song to the people of South Africa, but many will want to see action before buying into the promises - there has been so much promised before, and delivery is where the government has continually fallen short," says Siobhan Redford at Rand Merchant Bank.

read full story