The rand lost as much as 2% on Tuesday morning to briefly slip past the R13/$ mark, in moves that suggested a heightened a sense of nervousness towards local assets. The local currency is reeling from the renewed fear a Cabinet reshuffle, which could involve Pravin Gordhan being ousted as finance minister. On Monday President Jacob Zuma recalled Gordhan and his deputy, Mcebisi Jonas, from an overseas investor trip, without giving reasons. "This move by [Zuma] is now reviving talk of a Cabinet reshuffle, unnerving investors who see Gordhan as an emblem of stability," NKC Research analysts said in a note "Some pundits say Gordhan is the target of political pressure from a faction allied to Zuma, which has criticised his plans to rein in government spending as the economy stagnates." The sharply weaker rand stokes inflation and could sway the tone of the Reserve Bank’s monetary policy committee when it delivers its decision on interest rates. Before the latest political ructions, which...
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