South African rand steadies as ANC votes for new leader

South Africa’s rand steadied early on Monday, giving up earlier gains as the ruling African National Congress voted to elect a new leader to succeed President Jacob Zuma as party head.

ANC delegates began casting their ballots in the early hours of Monday, to select between Deputy President Cyril Ramaphosa and former chair of the Commission of the African Union Nkosazana Dlamini-Zuma as new party leader.

At 0645 GMT, the rand was traded at 13.0900 per dollar, unchanged from its New York close on Friday.

The currency had raced to a 3-1/2-month high of 12.7300 earlier on hopes Ramaphosa, who is favoured by markets, would win the race.

“At this time the market still awaits the outcome of the voting process, price action earlier in the session suggesting that the markets although optimistic, of a market friendly outcome, remain cautious and liquidity will be tested throughout the session, in both directions,” Nedbank analysts wrote in a note.

Stocks were set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.49 percent.

In fixed income, the yield for the benchmark government bond due in 2026 was down 5 basis points at 9.025 percent, reflecting firmer bond prices.

Reporting by Olivia Kumwenda-Mtambo; Editing by Subhranshu Sahu

Related Content

Rand hits record low, goes over 19 to dollar as Fitch downgrades SA further into junk status

Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...

Moody’s downgrades SA to junk status – what does this mean for the economy?

Moody’s downgraded South Africa’s sovereign credit rating to junk status on Friday evening and this has left has left government concerned and trembling in its boots to what extent that this might have on the economy. The downgrade coupled with the COVID-19 fears is bringing much stress to the rand as well as the markets. Joining CNBC Africa to unpack it all is Rashaad Tayob, Fund Manager at Abax Investments and Jacques Celliers, CEO of FNB.

Moody’s to cut South Africa’s sovereign credit rating to junk – economists

Moody’s will cut South Africa’s sovereign credit rating later on Friday as a recession deepened by the impact of coronavirus frustrates economic reform efforts aimed at reducing government debt, a Reuters poll of economists found.

South Africa’s rand steady as coronavirus-induced sell-off pauses

As of 0645 GMT, the rand was 0.69% firmer at 16.4500 per dollar, compared with Thursday’s session-low of 16.6150.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

Tsogo Sun Hotels FY profits plunge, COVID-19 lock-downs weigh

Hospitality Group Tsogo Sun Hotels reported a 31 per cent plunge in full year headline earnings per share, with Covid-19 resulting in demand from international tourist retracting in the fourth quarter, due to global lock-downs.

Nampak swings into H1 loss, suffers R3bn impairment

Nampak swung to a half year loss of R2.4 billion as revenue plunged and it impaired its Angola and Nigeria assets by R3 billion, which is four times its market value. The also warned that future profits were in South Africa were at risk from the ban on alcohol sales due to Covid-19 lock-downs. Nampak CEO, Erik Smuts joins CNBC Africa for more.

How COVID-19 impacts the health & well-being of children

Research shows that children have a lower rate of contracting the Coronavirus and bringing infections to the household. This should provide comfort to South African parents that are in two minds about sending their kids back to school next week, when physical teaching is set to resume. Epidemiologist, Dr Boshoff Steenekamp joins CNBC Africa for more.

Rebosis rolls out COVID-19 testing stations outside malls

Property Group Rebosis, has partnered with government to roll out testing stations for Covid-19 outside its shopping malls in Pretoria – South Africa’s capital. However, foot traffic into these malls is expected to have dived due to the virus lock-downs prevented non-essential stores from trading. Rebosis is yet to release its interim results. Rebosis CEO Sisa Ngebulana joins CNBC Africa for more.

Partner Content

VIVO CEO is a dynamic leader for this innovative global brand

May 2020 -- Six months ago the vision for vivo in South Africa was just beginning to...

Building Africa’s Biggest Digital Classroom

An enduring lesson learnt throughout our 175-year existence is that, while things rapidly change around us, the things that truly matter don’t!...

Trending Now

COVID-19: Economic meltdown the price – skills and trade the answer

Manufacturing is very prone to COVID-19, with many small businesses closing without credit to sustain them. Many had problems as far back as 2015 as they faced changing in markets and also disruptions from electricity and less investment confidence in the South African economy.

How Robots Can Help People With Disabilities Walk Again

The wheelchair has long been the primary solution for those with mobility challenges, yet the design has not changed drastically in hundreds of years. But new walking robots may finally be ready to disrupt the space, with one exoskeleton becoming the

What Happens To Frequent Flyer Miles If An Airline Goes Bankrupt?

With U.S. passenger traffic down by 90%, airlines are desperate to fill seats and are offering big incentives to keep their most reliable customers loyal. But what happens to frequent flyer miles when almost no one is flying and can an airline loyalt

How The Medical Device Supply Chain Failed During Covid-19

More than three months into the coronavirus pandemic, health-care workers on the front-lines of the battle against Covid-19 say they still face shortages of personal protective equipment. The personal protective shortage was one of the early flashpoi
- Advertisement -