off-the-wire

South African rand firms ahead of President Ramaphosa's speech

Kitco Media
By Reuters
Published:
Updated:
Reuters
JOHANNESBURG, Feb 9 (Reuters) - South Africa's rand firmed in early trade on Thursday, as investors awaited President Cyril Ramaphosa's State of the Nation address, which could offer some solution to ease a worsening power crisis. At 0700 GMT, the rand traded at 17.7100 against the dollar, 0.32% stronger than its previous close. Investors are demanding some leadership, guidance and clarity on steps being taken to extricate South Africa from its electricity generation crisis. "The country's future is at stake, so the rand will be solely focused on the contents of his message," ETM Analytics said in a note.


Daily power cuts since last year have hammered economic growth and are proving a major test for the governing African National Congress, whose support among voters is sliding. "A calm, direct and honest assessment, with strict timelines and some accountability, will go a long way to calming nerves," ETM said, adding that the market perceives significant risks and is positioned for some disappointment.


On the stock market, the Top-40 and the broader all-share indexes opened around 0.3% higher.


The government's benchmark 2030 bond was stronger in early deals, with the yield down 3.5 basis points to 9.740%. (Reporting by Anait Miridzhanian; Editing by Robert Birsel)

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