Rand weakens as ANC conference nears

File: Seasonally adjusted retail trade sales decreased by 1,1 percent in July 2020 compared to June.

Gallo/Brendan Croft

JOHANNESBURG - The rand was marginally softer on Monday morning‚ as focus turned to unfolding global and local political factors.

Domestically‚ the ANC national executive committee is meeting in Pretoria‚ with some reports that efforts are under way to reconcile contesting factions.

Analysts have said a compromise within the ANC should be rand-supportive‚ amid concern over the economic sustainability of the party’s policies.

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Also being watched is the ANC’s elective conference in KwaZulu-Natal‚ the province with the most ANC members. KwaZulu-Natal is widely expected to endorse Nkosazana Dlamini-Zuma on Tuesday as their preferred candidate for December’s elective conference.

Internationally‚ Brexit negotiations continue this week‚ while in the US‚ politicians will be trying to reconcile the differences in the tax reform bills of the Senate and the House of Representatives.

The reconciliation should be relatively simple‚ as the Senate and House bills were very similar‚ with only minor amendments needed‚ said FxPro analysts. The news had reinforced risk-on sentiment in the markets.

At 9.30am the rand was at R13.7864 from R13.7629‚ R16.3270 from R16.3276 and R18.5134 from R18.4937.

The euro was at $1.1843 from $1.1860.

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