JOHANNESBURG (Reuters) -The South African rand was little changed on Thursday as investors turned their attention to President Cyril Ramaphosa’s national address for insights on future economic and political policies.
At 1515 GMT, the rand traded at 18.5475 against the dollar, not far from its previous close.
Ramaphosa will deliver the annual State of the Nation Address at 1700 GMT, the first under his coalition government, which will provide investors some clarity on economic reforms and the approach to structural challenges.
Although the address has traditionally not been a market-moving event, this one could be different, analysts said.
A highlight may be the economic reforms underway, which are key to removing the country from the Financial Action Task Force’s greylist and stabilising government finances.
ETM Analytics said in a research note that Ramaphosa will want to use the opportunity of the address to paint the country’s future efforts in a better light.
“This SONA will, therefore, be the main event of the day and capture the bulk of the market’s attention through the afternoon and evening as it receives more and more coverage,” the note added.
On the stock market, the Top-40 index closed 0.9% higher.
South Africa’s benchmark 2030 government bond was marginally weaker, with the yield up 0.5 basis point at 9.05%.
(Reporting by Sfundo Parakozov. Additional reporting by Bhargav Acharya. Editing by Tannur Anders and Mark Potter)
