Rand will continue to test R15/$ with Nene's fate undecided

The rand will continue to test the R15.00/$ mark until there is clarity on whether Finance Minister Nhlanhla Nene will be stepping down, according to analysts. 

According to Bianca Botes of Peregrine Treasury Solutions, rumours of the finance minister’s exit are casting a shadow over National Treasury and the currency. 

The local currency opened at 14.84/$ and was changing hands at 14.86/$ at 10:22, 0.12% weaker. 

According to News24, Nene offered to resign in a phone call to the president in the wake of his testimony at the State Capture Inquiry that he met with members of the Gupta family several times between 2009 and 2014. 

• READ: SA needs a finance minister with a proven track record if Nene goes, say economists

The finance minister had not previously acknowledged these meetings. Neither Treasury nor the presidency has provided official comments on Nene’s fate. 

Botes said the rand would likely trade in a range between R14.83/$ and R15.00/$ on Tuesday.

Adam Phillips of Umkhulu Consulting gave the currency’s estimated range for Tuesday at between R14.75/$ and R15.00/$, while NKC African Economics put its range between R14.70/$ and R14.95/$.

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