Rand Weakens First Day in Three Before ANC Leadership Results

The rand weakened for the first time in three days as the market waited for results from South Africa’s ruling African National Congress’s leadership election.

The currency declined as much as 0.3 percent and was trading 0.2 percent weaker at 8.5591 per dollar by 9:35 a.m. in Johannesburg. The rand strengthened 1.4 percent in the preceding two days. South African markets were closed yesterday for a public holiday. Yields on benchmark 10.5 percent bonds due December 2026 fell one basis point, or 0.01 percentage point, to 7.34 percent.

The ANC ended voting for its top leaders with results expected later today. President Jacob Zuma is the favorite to win a second five-year term as head of the ruling party, fighting off a challenge from his deputy, Kgalema Motlanthe, who yesterday dropped out of the race for the deputy post.

“There will be inherent discomfort” before the results are announced, William van Rijn, a currency trader at Nedbank Group Ltd. in Johannesburg, said by phone. “Unsurprisingly, given the long weekend locally and the resilience of the rand, local importers have also taken advantage of current levels to take some cover.”

To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.