The rand lost ground against the dollar in bearish afternoon trade on Tuesday, as it faces further trials. Analysts expect the rand to remain on the back foot ahead of S&P Global Ratings’ expected rating update on Friday. Moody’s announcement is also expected soon. The market has expressed its disappointment with the ANC for failing to unseat President Jacob Zuma at its national executive committee meeting, this past weekend. The rand firmed to R12.65/$ at one point on Monday, but has since fallen. A Zuma exit, based on his presidency coming to an end, should bring about a rand rally closer to R11.50/$ from the present R13/$, said Colin Coleman, the head of Goldman Sachs banking for sub-Saharan Africa. On the negative side, he said if S&P and Moody’s cut the local currency rating to subinvestment grade, and SA exited the Citibank world government-bond index, about $7bn to $10bn could flow out of the country. "The rand will, over time, move more toward the R14/$ level," Coleman said....
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