Most emerging market currencies weakened over the course of the week but the rand was the worst performer, out of a basket of 24 emerging market currencies, having weakened by 3.1%. The rand’s performance can be ascribed to a combination of domestic and external factors. Domestically, political events relating to the Cabinet reshuffle this week served to further raise perceived policy uncertainty. Externally, the US$ gained traction following Senates adoption of a fiscal 2018 Budget resolution which enhances the prospects for Trump’s tax reforms. 

In the week ahead, the rand is expected to trade in a range of R14.20/USD – R13.20/USD, R16.70/EUR - R15.70/EUR and R18.50/GBP - R17.50/GBP.