The South African rand maintained stability in early trading hours following President Cyril Ramaphosa’s announcement of a new set of reforms aimed at spurring economic growth.
According to Reuetrs, the rand hovered at 18.4325 against the dollar at 0752 GMT, remaining close to its last closing figure.
The week began with tension as U.S. President Donald Trump threatened to cease funding to South Africa, alleging land confiscation without providing evidence. In response, President Ramaphosa declared on Thursday that South Africa "will not be bullied," reinforcing the nation’s stance.
During his annual state of the nation address, Ramaphosa outlined a strategy to elevate the country’s economic growth beyond 3%. This plan includes reviving state enterprises such as Eskom, the power utility, and Transnet, the logistics group, along with increased investment in infrastructure.
Analysts from ETM Analytics noted a positive shift in the rand’s trajectory, stating, "It (the rand) may have started the week on the defensive but appears to be ending it firmly on the front foot as the USD-ZAR now looks set to target levels closer to 18.4000 ahead of the weekend."
While the dollar saw a slight increase of 0.1% against a basket of currencies, investors remained on the lookout for the U.S. nonfarm payroll data, which is expected to provide insights into the health of the American labor market.
In the stock market, the Top-40 (.JTOPI) index experienced a modest rise, trading approximately 0.5% higher. Conversely, South Africa’s benchmark 2030 government bond showed signs of weakening in early transactions, with the yield rising by 2 basis points to 9.07%.
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