With almost all international bourses in the red, it was clear that sentiment had taken a turn for the worse — which was likely to put the rand under pressure, RMB said on Thursday.
”We expect USD/ZAR, currently trading at 9,77, to meet resistance at 10,05 but it could find support at 9,70 this afternoon if the statement from the European Central Bank later today [Wednesday] points to an aggressive interest-rate cutting cycle,” RMB said.
RMB added that the appointment of Nhlanhla Nene as South Africa’s deputy finance minister on Wednesday has been met by the markets with widespread approval.
”Nene, formally the chairperson of the National Assembly’s finance portfolio committee, is known to have a steady hand and a clear understanding of the many challenges facing the South African economy.”
It was noted that in the context of the slowing economy and a likely deterioration in government finances, the period ahead will be a challenging one for both Finance Minister Trevor Manuel and his new deputy, RMB said. — Sapa