Forex trading specialist, Peregrine Treasury Solutions, has released a new report on the rand’s performance over the course of 2017.
Few currencies could match the tumultuous rand over the course of 2017, with international factors such as the inauguration of Donald Trump, and internal factors including the firing of finance minister Pravin Gordhan and the appointment of Cyril Ramaphosa as ANC president contributing to the R2.04 price swing of the course of the year.
The local currency recorded a worst of R14.47 and a best of R12.43 against the dollar in 2017, and is already off to a better start in 2018 as investors have reacted positively to Ramaphosa’s appointment, Peregrine said. The country’s vice president is seen as more business-friendly than incumbent president, Jacob Zuma.
On Thursday however, the rand slipped to R12.42 against the dollar – off its two and a half year highs – following the news that Zuma would not be stepping down from his post early, as had been hoped.
Peregrine said that the focus will now shift to the upcoming State of the Nation Address and the February budget speech, for further direction.
The currency specialist has published a timeline of the rand’s performance in 2017: