Ricochet News

Rand weakens ahead of State of the Nation Address

FEBRUARY 12, 2015
Rand weakens ahead of State of the Nation Address

The Rand weakened in early trade on Thursday ahead of President Jacob Zuma's much-anticipated State of the Nation Address.

At 0704 GMT, the Rand was trading 0.22% softer at 11.8615 to the dollar, compared to its closing level of 11.8350 on Wednesday.

The Rand touched a 12-year low of 11.8925 on Wednesday after long-standing economic frailties and more immediate socio-political pressures turned sentiment against the currency.

Investors hope would tackle domestic economic woes including electricity shortage.

Struggling power supplier, Eskom, on Wednesday implemented load shedding for a 10th straight day after technical problems on its aging units cut capacity.

Government bonds also weakened, with the yield for the 2026 benchmark up 0.5 basis points to 7.625%.