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Rand Appreciation Continues On Rejection Of Phala Phala Report

ZAR

The South African Rand has extended gains as it became apparent that parliament would reject the motion to launch impeachment proceedings against President Cyril Ramaphosa on the basis of the Section 89 panel report, with just five ANC lawmakers voting against party line.

  • USD/ZAR trades at ZAR17.2867, down more than 2,900 pips on the day on reduced political risk premium. The pair has now given away the entirety of yesterday's gains and bears set their sights on Dec 7 low of ZAR17.0617.
  • Local-currency bond yields have faltered across the curve amid renewed demand for South African assets. The FTSE/JSE Africa All Share Index continues to operate near recent cyclical highs, last ~2% higher on the session.

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