Market News
South African rand firms on weaker dollar, Ramaphosa court ruling in focus - REUTERS
JOHANNESBURG, May 8 (Reuters) – The South African rand strengthened on Friday, supported by a weaker dollar, while markets also digested a ruling by the country’s highest court that revived impeachment proceedings against President Cyril Ramaphosa.
At 1323 GMT, the rand traded at 16.38 against the dollar, 0.8% stronger than its previous close.
The greenback was weaker against a basket of currencies as markets priced in optimism over a prospective U.S.–Iran peace agreement.
South Africa’s constitutional court on Friday revived impeachment proceedings against Ramaphosa over a scandal dubbed “Farmgate”, ruling that parliament had acted unlawfully in blocking the process in 2022.
The case relates to allegations that large sums of foreign currency were stolen from Ramaphosa’s Phala Phala game farm in 2020.
Central Bank data on Friday showed the country’s net foreign reserves rose to $73.76 billion at the end of April, from $73.19 billion in March.
Next week, South Africa-focused investors will assess unemployment figures, manufacturing production data and mining output, which will shed light on the health of Africa’s most industrialised economy.
On the Johannesburg Stock Exchange, Top-40 index was last down 1.4%.
South Africa’s benchmark 2035 government bond was also weaker, as the yield rose 5 basis points to 8.625%.
