JOHANNESBURG: South Africa’s rand made a slight recovery early on Thursday, having slipped the day before when the African National Congress (ANC) said it would try to form a government of national unity following last week’s election.
At 0715 GMT, the rand traded at 18.90 against the dollar, 0.2% stronger than its previous close. The ANC lost its majority in the May 29 election for the first time since coming to power 30 years ago.
It said on Wednesday that it had met with all interested parties keen to contribute ideas to form a government.
The party’s National Executive Committee will hold high-stakes internal talks later on Thursday to discuss options.
South African rand steady ahead of manufacturing figures
“Traders are likely to remain on edge until there is some certainty on the way forward, and we expect trading in the Rand to be fairly volatile and headline-driven in the short term,” said Andre Cilliers, currency strategist at TreasuryONE.
On the stock market, the Top-40 index was up 0.1% in early trade.
South Africa’s benchmark 2030 government bond was stronger in early trade, with the yield down 12 basis points at 10.610%.
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