Rand weakens after SONA postponed: economist

Photo_Web_Rand_Coin_090517

File: the rand weakened 0.62 percent to 13.6950 per dollar compared to a close of 13.6100 overnight in New York.

File: the rand weakened 0.62 percent to 13.6950 per dollar compared to a close of 13.6100 overnight in New York.

Photo_Web_Rand_Coin_090517

File: the rand weakened 0.62 percent to 13.6950 per dollar compared to a close of 13.6100 overnight in New York.

File: the rand weakened 0.62 percent to 13.6950 per dollar compared to a close of 13.6100 overnight in New York.

JOHANNESBURG – An economist has explained that the effect on the Rand, after SONA was postponed. 

Isaah Mhlanga of the Rand Merchant Bank Economist says, "It weakened on the basis of falling equity prices in the US but it was aggravated by political noise on President Zuma resigning, Zuma no longer resigning and also the postponement of SONA introduces uncertainty.”

READ: Rand firms as the ANC counts votes

“The Deputy President went to Davos and told investors he has everything under control he told them the nuclear deal is off the table now he comes back and he can&39;t even control his own party&39;s affairs. It says things are not well in the ruling party and if things are not well in the ruling party it says things are not well in SA Inc. So it has big ramifications for financial markets indeed."