The rand held broadly steady on Tuesday morning, but stayed within touching distance of the symbolic R12/$ level, which represents the best level in two-and-a-half years.The local currency is highly sensitive to local political developments at the moment, and offshore events appear to be playing second fiddle.The ANC has officially denied that its national executive committee has taken a decision to recall President Jacob Zuma.But party insiders insist a Zuma exit could be the cards, possibly before campaigning starts for next year’s general election. Investec economist Annabel Bishop said on Monday that Zuma’s exit could push the rand to strengthen to R11.70/$‚ a move that would help lower fuel prices and inflation.A benign inflation outlook could encourage the Reserve Bank to resume its interest rate cutting cycle later in the year, though such policy steps would also take into account global monetary policies. The US Federal Reserve is expected to raise interest rates again this ...
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