Rand weaker as cabinet reshuffle risk resurfaces

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File: It is expected that wealthier South Africans will get taxed more on the money they make from selling their stocks, bonds and property.

JOHANNESBURG - The rand was slightly weaker to the dollar on Monday afternoon after a week-long rally that saw it strengthen to R12.90.

Local markets are once again concerned with the political risk of a possible cabinet reshuffle.

Nedbank strategic head of research Mohammed Nalla said the local currency’s rally started easing on position squaring on Friday ahead of the public holiday in the US today with major global currencies having also slipped against the greenback.

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Rand Merchant Bank analyst John Cairns said although the rand’s rally had been broken‚ the market was “biased for losses in the short term” and the gains would eventually resume although “not this week”.

At 3.33pm the rand was at R13.1268 to the dollar from Friday’s R13.0785. It was at R13.9340 to the euro from R13.8719 and at R16.3636 to the pound from R16.2262.

The euro was at $1.0615 from $1.0608.

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