The rand continued to weaken against the dollar on Wednesday, sliding to a fresh one-week low, weighed down by a squabble between the ANC and government over the mandate of the central bank.
At 6pm the rand was 1.5% weaker at 14.87 a dollar, bringing losses since Monday to more than 3% as a double whammy of dismal growth and policy uncertainty re-emerged.
On Wednesday Finance Minister Tito Mboweni told reporters in Johannesburg there were no plans to change the bank’s mandate. At the same event central bank governor Lesetja Kganyago insisted the main job of the bank was to protect the rand’s value in the interests of growth. “The announcement, and counter announcements on the reserve bank’s independence, come at a poor time for the rand, which typically sees material risk from the second quarter to the end of the third quarter,” said Investec’s chief economist Annabel BishopThe yield on the benchmark 10-year government bond reached 8.5% having started the previous session at 8.415%.
Global gold prices rose to 15-week highs, lifting mining company Gold Fields to the top of the blue chips with a 6.35% advance to 76 rand, while fellow bullion miner AngloGold rose 4.22% to R217.20.
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