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JOHANNESBURG. — The rand was marginally weaker against the dollar yesterday morning but remained range-bound following a week marred by local political risk. The local currency traded between 13,2336 to the dollar and 13,5269 to the dollar last week despite speculation of a Cabinet reshuffle. There had been rumours that a reshuffle would be announced during President Jacob Zuma’s state of the nation address.

Zuma’s speech focused on radical socioeconomic transformation, but provided little in defining new policy initiatives to bolster the economy and put it on a sustainable economic growth path.

Political risk — local and international — is likely to dominate this week. The budget speech on February 22 will be closely watched as it should reflect the Treasury’s commitment to transformation policy while maintaining a path of fiscal consolidation, especially as SA’s sovereign credit rating remains at risk of a downgrade.

Nedbank analysts said while the rand had attempted to breach the 13,20/$ mark, which held as rand resistance, the more times a level was tested, the greater the probability of breaking through that level.

They expect the level to give way to the 12,80/$ horizontal pivot level last seen in June 2015. Local political risks, however, are likely to hinder the rand’s attempt to reach those levels.

Federal Reserve chairwoman Janet Yellen will present the Fed’s semi-annual monetary report to the new congress today. — BDLive.