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South Africa’s rand flat, traders eye coalition tension - CNBC
JOHANNESBURG, June 27 (Reuters) – The South African rand was largely flat in early trade on Friday after sharp falls a day earlier, with traders keeping an eye on a potentially disruptive dispute between President Cyril Ramaphosa and his main coalition partner.
The currency was 0.1% higher against the dollar at 17.8550 at 0947 GMT, a day after Ramaphosa, of the African National Congress (ANC), fired the deputy trade minister, from the Democratic Alliance (DA), without giving a reason.
DA spokesperson Karabo Khakhau told broadcaster Newzroom Afrika that Ramaphosa has until 1330 GMT on Saturday to either reinstate their member or remove three ANC members who the DA says are implicated in corruption.
Commerzbank analyst Volkmar Baur said in a research note this tension going into the weekend could weigh heavily on the local currency
On Monday, investor attention will also be on May credit extension and money supply data trade balance and budget balance data for the same month.
South Africa’s benchmark 2035 government bond fell sharply in early deals, as the yield rose 12.5 basis points to 10.08%.
(Reporting by Sfundo Parakozov; Editing by Andrew Heavens)
