Rand rallies further as markets raise bets on a Ramaphosa win
The currency hit levels below R13.10/$, cheered by court rulings on ANC leadership structures and unfazed by Jacob Zuma’s populist move on free higher education
The rand was trading more than 2% firmer in late trade on Friday, extending earlier gains seen largely as a continuation of the currency’s “Ramaphosa rally”.
It strengthened as far as R13.09/$, and was last quoted 2.66% firmer on the day at R13.1389/$, according to Trading Economics.
The gains came on the eve of the ANC’s elective conference, and followed a trio of court rulings on ANC provincial and branch leadership structures that went against backers of Nkosazana Dlamini-Zuma to succeed Jacob Zuma as party president.
Ramaphosa, Dlamini-Zuma’s main rival, is regarded as a more business- and market-friendly candidate.
“Markets are definitely viewing that court ruling as positive for the rand, more especially positive for the Ramaphosa campaign,” Standard Bank senior forex dealer Oliver Alwar told Reuters on Friday.
“I think markets are discounting far too much of a Cyril victory. It’s not cut in stone. Things could change very easily over the weekend,” he said.