Rand stabilises at weaker levels as US-China talks resume

On Wednesday, downbeat retail sales, a negative assessment by ratings agency Moody’s on the pace of SA’s fiscal consolidation, and further commentary from the ANC about expropriation of land without compensation put the local unit on the back foot.

Outlining the ANC’s plan for expropriation of land without compensation on Wednesday, ANC chair Gwede Mantashe said the state would limit land ownership to 12,000ha per farm owner, expropriating the rest without compensation.

Whether or not this is feasible is another story, but with uncertainty continuing, the issue will affect investor sentiment for the foreseeable future, according to TreasuryOne senior currency dealer Andre Botha.

At 3pm, the rand was at R14.5708 to the dollar, from R14.5693, at R16.5652 to the euro from R16.5314 and at R18.5111 to the pound from R18.5046.

The euro was at $1.1368 from $1.1345.

The benchmark R186 government bond was bid at 8.96% from 9.01%, and the R207 at 7.63% from 7.715%.