The rand gained more than 30c against the dollar after the appointment of new finance minister – of Tito Mboweni.
Mboweni replaced Nhlanhla Nene‚ who resigned earlier following disclosures that he had had more extensive meetings with members of the Gupta family than had previously been indicated.
The rand increased to R14.7216 to the dollar in the moments leading up to the announcement‚ after earlier weakening to R15.0625 following reports that Mcebisi Jonas had declined the position.
Once the President started addressing the meeting‚ the rand was trading at R14.7498. By the time it concluded‚ the rand was at R14.7642.
It seems Mboweni has the ability to restore credibility to the markets based on information we have so far, Sasfin Wealth fixed-income trader Alvin Chawasema said.
Local bonds reacted positively to the news. The benchmark R186 was last bid at 9.21% from 9.285%.