The South African rand, after firming 3% against the dollar during the week, was trading slightly weaker on Friday morning in the wake of President Cyril Ramaphosa's State of the Nation address, report reveals.
The local currency opened trade at R14.33 to the greenback and was changing hands at R14.38 at 08:30, down 0.3%.
“All events favoured the local unit this week, ranging from a dovish US Federal Reserve to clear optimism from ratings agency Moody’s with regards to the outlook of the local economy,” said Bianca Botes of Peregrine Treasury Solutions in a note to clients.
Botes said that while the tone of Ramaphosa's address on Thursday evening was upbeat, it “left many South Africans with perhaps even more questions than before the address".
“The country remains in the dark as to what exactly the turnaround plan for the economy will entail."
NKC African Economics, in a morning note to clients, described Ramaphosa's address as competent.
“Expectations had been so high – perhaps too high – that he would add some spark to his new dawn. Given the political and factional tightrope he must walk, the financial and economic constraints, the shattered country he inherited less than two years ago and a deep hunger among South Africans of all hues for hope and belief that change was imminent, his speech last night was competent, solid and often masterful but still felt a little like the president lacked conviction," it said.