In another unsettling day for the South African currency, the rand tumbled 2.5% on Monday from Sunday’s two-month high, to just below R13/$ after the ANC confirmed President Jacob Zuma had not been recalled. The rand firmed to R12.6598/$ on Sunday evening, but by midday on Monday, it was trading at R12.94/$. Directly after the ANC’s media conference at which secretary-general Gwede Mantashe said the party’s national executive committee (NEC) had rejected calls for Zuma to resign, the rand lost more ground to R12.9857/$. TreasuryOne dealer Gerard van der Westhuizen said the rand could test a psychologically important barrier at R13/$ over the short term and that it may even weaken to R13.10/$. Analysts said the spike in the rand on Sunday was the result of Asian trade and directly linked to reports on Friday that a substantial number of NEC members would support the party’s recall of Zuma. On Monday, though, the market doubted the possibility of that happening, with local traders tak...
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