Rand steady on Zuma exit ultimatum | Fin24
 
  • Mboweni on State Capture

    The new finance minister has described state capture as a 'great public sector heist'

  • Kganyago on Populism

    The central bank head says SA must learn economic lessons from Venezuela and Zimbabwe.

  • Up in the Air

    Uber Air could see SA shoppers flying to malls via skyports, says a company executive.

Loading...

Rand steady on Zuma exit ultimatum

Feb 13 2018 06:35
Fin24 team

Cape Town – The rand held steady in early trade on Tuesday following news that the ANC has given President Jacob Zuma an ultimatum to step down.

The rand rallied on Monday afternoon on rumours that Zuma had finally caved in under pressure and decided to resign. The Presidency rejected this at the time as "fake news".

The local currency - which held steady in the high R11.90s to the greenback for most of the trading day Monday, on the back of dollar weakness and signs of Zuma's imminent departure - had strengthened almost 1% to trade at R11.88 to the dollar by 16:30 on Monday.

For the rest of the trading session and in overnight trade in New York, the local unit traded in a narrow band before closing trade on R11.94/$.

The rand weakened 0.3% to R11.97/$ at 03:28, shortly after news broke that Zuma was given an ultimatum to resign after yet again refusing a request to resign voluntarily.

By 06:23, the unit was trading 0.08% firmer at R11.93/$.

Market watchers said earlier on Monday they expected the rand to firm to as high as R11.70/$ should Zuma step down as head of state.

EasyEquities trader Musa Makoni expects positive sentiment to drive the local unit to below R11.80, while Investec chief economist Annabel Bishop expects the currency to strengthen to R11.70/$ on Zuma's ouster.

Alex Paynter, market analyst of Dynamic Outcomes, told Fin24 on Monday afternoon that market movements have not followed rational thinking, and rarely do. 

"This is because every bit of information, including expectations, fears, perceptions and doubts, are all factored into the market price at any point in time. I believe most people have already factored in his [Zuma's] resignation, and his departure may have some short-term reaction, but may not have as big an impact as people would have thought.”

ANC president Cyril Ramaphosa, meanwhile, on Sunday told a crowd of about 3 000 people on the Grand Parade in Cape Town that “our people want this matter finalised”.

"The national executive committee will be doing precisely that. We know you want closure on this matter," he said.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

rand  |  markets  |  currencies
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The Data Market Inquiry:

Previous results · Suggest a vote

Loading...