Rand weakens as political uncertainty resurfaces
The rand was slightly weaker against major currencies on Wednesday just before midday as domestic political concerns resurfaced.
On Tuesday, a Pietermaritzburg High Court ruling that declared the 2015 election of President Jacob Zuma’s ally, Sihle Zikalala, as ANC KwaZulu-Natal chairperson unlawful, has created uncertainty within the ruling party as it prepares for its December national elective conference.
KwaZulu-Natal is a key province for the ANC and the ruling suggests the province is effectively without a leader.
TreasuryOne dealer Gerard van der Westhuizen said this had created some uncertainty about the ANC party elections scheduled for December, and if the conference were pushed out further, it could be negative for both the rand and ratings agencies.
At 11.30am, the rand was at R13.0967 to the dollar from R13.0091‚ at R15.6861 to the euro from R15.5671, and at R17.3806 to the pound from R17.2777.
The euro was at $1.1977 from $1.1966.