Rand holds firm despite NHI bill as cooler US inflation saps dollar
Close-up of a Five Rand coin resting on a new South African Hundred Rand banknote, featuring the smiling face of iconic statesman Nelson Mandela.The rand held firm despite President Cyril Ramaphosa's decision to sign the controversial National Health Insurance bill into law on Wednesday.
The currency traded little changed at R18.35/$ in late afternoon trade shortly after Ramaphosa officially ushered in the NHI at a signing ceremony at the Union Buildings in Pretoria. News that the NHI would be signed into law just two weeks before the 29 May general election, in which the ANC is expected to lose its majority for the first time, had been met with a mix of consternation and threats of legal action from business lobby groups and private sector medical insurance firms.
Adam Furlan, a fixed-income portfolio manager at Ninety One, told News24 the rand's resilience in the face of the NHI bill was likely due to a combination of factors, including benign US inflation data that bolstered the chance of rate cuts, and South Africa's improving terms of trade. He also said the fact that risks associated with the NHI were well known and likely to be challenged in court were supportive of the rand.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Rand Report: South African rand gains momentumThis week, two key events unfolded: US inflation data surpassed forecasts, delaying the rate cut to September and boosting the US Dollar.
Read more »
The Rand Report: Rand falls amid Middle East tensions and market jittersThe South African rand fell sharply, driven by 'risk-off' sentiment amid ongoing Middle East conflict and fears of escalation.
Read more »
Weekly Rand Report: Rand gains strength in continuity with current trendsThe South African rand gained strength recently due to a weaker US market and conservative policies of the South African Reserve Bank.
Read more »
NHI: Business gears up for possible legal battle as Ramaphosa set to make 'damaging' bill lawNHI: Business gears up for possible legal battle as Ramaphosa set to make 'damaging' bill law
Read more »
Ramaphosa failed to ensure NHI improves SA healthcare, doctors and medical workers sayRamaphosa failed to ensure NHI improves SA healthcare, doctors and medical workers say
Read more »
'SA does not have the funds': Momentum Metropolitan first insurer to respond to NHI news'SA does not have the funds': Momentum Metropolitan first insurer to respond to NHI news
Read more »