The rand plummeted about 52c against the dollar on Monday after President Jacob Zuma ordered Finance Minister Pravin Gordhan home from a global investor road show, while banks and property stocks retreated on the JSE in similar fashion to Nenegate in December 2015. The rand’s retreat was directly attributable to Zuma’s action despite a weaker dollar, which usually supported an appreciation in the rand, analysts said. In late trade, the rand was 2.6% weaker against the dollar. It had reached a 20-month best of R12.31/$ in morning trade, but then plunged to R12.8295. This was about 4.2% lower from its intraday best, relegating the rand from best to worst emerging-market currency within hours. The JSE’s all-share index closed 0.18% lower at 51,724.90. Banking stocks dropped 3.05% and the property index lost 1.37%. Financials shed 1.35%. Analysts said the rand remained vulnerable. "We can easily see the rand fall a further 5% should Gordhan be removed as minister," said Kaon Capital CEO...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.