Cape Town — Will he stay or will he go? As leaders of the ANC prepare to discuss a potential ouster of President Jacob Zuma, investors are turning bullish on the country’s currency. Société Générale, Crédit Agricole and Citigroup are betting on a resurgence in the rand, which has lost 4% of its value since his sparked a crisis with a Cabinet reshuffle. Just talk that Zuma may be removed by the ANC has increased the appeal of the nation’s assets, according to SocGen strategists Jason Daw and Phoenix Kalen, who recommend selling the dollar for the rand and buying longer-dated bonds. The currency surged to a one-month high on Wednesday as debt yields dropped to two-month lows. Opposition to Zuma’s rule has mounted within the ANC’s ranks following his March 31 decision to fire Pravin Gordhan as finance minister, a move that prompted S&P Global Ratings and Fitch to downgrade the nation to junk. The party’s leadership will discuss Zuma’s future from Friday, according to two senior party o...
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