Cape Town - Although negative, the rand’s reaction to President Jacob Zuma's Cabinet reshuffle late on Thursday evening has not been as aggressive as one would have imagined, Tumisho Grater, economic strategist at Novare Actuaries & Consultants, said on Friday.
The restructuring saw the removal of both Finance Minister Pravin Gordhan as well as his deputy minister Mcebisi Jonas. The current Minister of Home Affairs, Malusi Gigaba, will now lead the Finance Ministry, joined by Sfiso Buthelezi as the new deputy.
After dipping below R13.00 against the dollar in Thursday’s trade, once the news of Gordhan's axing was known, the rand hit R13.45 to reach a high of R13.62 on Friday morning.
Later the rand was trading below R13.50 against the greenback while the bond market has seen the 10-year bond yield peak at 9% Thursday - up from 8.3% a week ago. Local markets opened weaker, weighed down by financials that were down by over 3% in the first hour of trading.