JOHANNESBURG - The rand was little changed in early deals on Thursday, largely holding on to gains notched up overnight after President Jacob Zuma resigned.
The rand made some major gains on Wednesday night as Zuma resigned. The rand reached highs against the US dollar that it had not seen since 2015, as Zuma announced to the world that he would step down with immediate effect.
At 07:08 on Thursday morning, the rand was at 11.7300 against the dollar, barely changed from its overnight close 11.7200 in New York and not far from levels last seen in March 2015.
The 75-year old leader resigned on Wednesday, reluctantly heeding orders by the ruling African National Congress to bring an end to his nine scandal-plagued years in power.
“The removal of President Zuma is the end of the beginning, not the beginning of the end. Financial markets, investors and business owners are not going to be distracted by the early removal of yet another sitting president for much longer and the attention will turn to what the new order intends to do and when it will do it,” NKC African Economics said.