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The rand fell from its best levels this year after a new opinion poll showed support for the ruling African National Congress is plunging and a party backed by former President Jacob Zuma may become the country’s third-biggest.
The South African currency depreciated as much as 0.9% to R18.6231 per dollar after Bloomberg reported the poll by the Social Research Foundation Wednesday.
Prior to this, the rand had been strengthening for a fourth day, its longest streak in a month.
“Uncertainty in South African politics increased markedly after the latest poll revealed that support for the governing ANC plunged while former President Zuma’s party may become a major political force,” said Piotr Matys, a currency analyst at InTouch Capital Markets.
The ANC, which has governed South Africa since the end of apartheid, may garner just 37% support in the May 29 vote, while Zuma’s uMkhonto weSizwe Party, or MKP, may get 13%, the SRF said, citing a poll it carried out this month.
READ | Jacob Zuma can contest elections, Electoral Court rules
Such a result would mean the ANC has to form a coalition with a large party in order to retain control of Africa’s most industrialised economy. Zuma’s decision to back the MKP has eaten away at the ANC’s support. He ruled the country from 2009 to 2018, when the ANC forced him from office.
