JOHANNESBURG, May 8 (Reuters) – The South African rand strengthened on Friday, supported by a weaker dollar, while markets also digested a ruling by the country’s highest court that revived impeachment proceedings against President Cyril Ramaphosa.
- At 1323 GMT, the rand traded at 16.38 against the dollar , 0.8% stronger than its previous close.
- The greenback was weaker against a basket of currencies as markets priced in optimism over a prospective U.S.–Iran peace agreement.
- South Africa’s constitutional court on Friday revived impeachment proceedings against Ramaphosa over a scandal dubbed “Farmgate”, ruling that parliament had acted unlawfully in blocking the process in 2022.
- The case relates to allegations that large sums of foreign currency were stolen from Ramaphosa’s Phala Phala game farm in 2020.
- Central Bank data on Friday showed the country’s net foreign reserves rose to $73.76 billion at the end of April, from $73.19 billion in March.
- Next week, South Africa-focused investors will assess unemployment figures (ZAUNR=ECI), opens new tab, manufacturing production (ZAMAN=ECI), opens new tab data and mining output (ZAMNG=ECI), opens new tab, which will shed light on the health of Africa’s most industrialised economy.
- On the Johannesburg Stock Exchange, Top-40 index (.JTOPI), opens new tab was last down 1.4%.
- South Africa’s benchmark 2035 government bond was also weaker, as the yield rose 5 basis points to 8.625%.
Reporting by Sfundo Parakozov and Nilutpal Timsina