The rand gained as much as 1% to the dollar as markets warmed to the idea of SA forming a government of national unity.
The ANC, whose support fell to 40% in the recent elections, has opted to work with opposition parties, forgoing forming coalitions with any of its erstwhile political rivals.
Having firmed to R18.75/$ intraday, the local currency, however, gave up some of Friday's gains after the latest numbers on the US jobs market surprised. The world's largest economy created 272,000 jobs in May, well above expectations of 185,000, causing the dollar to strengthen across the board.
The last time SA had a government of national unity was under Nelson Mandela from April 1994 to June 1997, when the National Party left to take on the role of opposition. During those years the rand traded from R3.50-R4.30/$.
At 5.23 pm on Friday the rand had firmed 0.3% to R18.8791/$, 1.08% to R20.4141/€ and 0.84% to R23.9986/£. The euro fell 0.76% to $1.0806.
TreasuryONE currency strategist Andre Cilliers said the rand had firmed on the ANC announcement. However, he said the mood was cautious “as markets await the exact make-up of the unity government and what parties will be involved”.
The JSE was weaker on Friday, while clothing retailers substantially outperformed the market.
TFG earlier reported a 22% increase in online turnover in the year to end-March as SA retailers face increased competition from Chinese outfits Shein and Temu.
The group said its online retail sales came in at R5.6bn, contributing 9.9% to total retail turnover in the year under review.
The company’s share price shot up the most since June 2020 — when SA began to emerge from the first, hard, pandemic lockdown — and by market close had gained 11.29% to R103.50.
The move appeared to boost other clothing retailers, with Truworths rising 5.16% to R80.06 and Mr Price 5% to R184.22.
The JSE all share closed the day 0.35% lower at 76,851 points and the top 40 fell 0.57%. Mining stocks took the most punishment as commodity prices fell when money moved into the dollar following the US jobs report.
At 5.42pm gold had fallen 2.8% to $2,308.91/oz and platinum 3.64% to $967.93. Brent crude was down 0.35% to $79.67 a barrel.
With Kabelo Khumalo
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