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Rand Hits Intraday Lows On IOL Report Re: Unity Gov't Proposal

ZAR

Spot USD/ZAR rallied to fresh intraday highs of 18.9150 before trimming gains, with participants scanning an IOL source report suggesting that the ANC's NWC was about to announce the party's intention to form a national unity government in collaboration with major parties such as the DA, EFF, IFP and PA.

  • Note that any instructions of the NWC need to be approved by the wider National Executive Committee (NEC), which is scheduled to meet on Thursday.
  • USD/ZAR last deals at 18.8544, around 1,400 pips higher on the day but away from best levels. SAGBs have extended losses.
  • Political risk headlines have taken precedence over the release of Q2 BER Business Confidence, which rose to 35 from 30. The BER noted that "the survey results predate the outcome of the elections."

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