South Africa’s currency fell the most in emerging markets Thursday, leading a selloff in the nation’s assets, amid growing anxiety over delays to the formation of President Cyril Ramaphosa’s Cabinet.
That put it on course for the lowest close since June 14 and the worst performance among developing-nation peers this week. South Africa’s benchmark sovereign-bond yield jumped 12 basis points, the most in three weeks, and stocks dropped for a third day. ADVERTISEMENT CONTINUE READING BELOW It’s been eight days since Ramaphosa was sworn in and he still doesn’t have a functioning Cabinet as talks drag between the African National Congress and Democratic Alliance over its composition.
“There are two things in rand investors’ mind,” said Sebastien Barbe, the head of EM research at Credit Agricole CIB. “The composition of the government is the foremost. Even if this ANC-DA alliance has been already priced in, DA having significant economic ministries could see some upside for the rand.”
Over the long term, South Africa’s Reserve Bank hinting at possibly lowering the inflation target suggested “possibly rates higher for longer – potentially rand supportive as well when it happens,” said Barbe. ADVERTISEMENT: CONTINUE READING BELOW Johannesburg’s benchmark stock index headed for the longest losing streak since June 11, led by banking stocks.
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CapeTownEtc - 🏆 17. / 63 Read more »