JOHANNESBURG - As uncertainty over President Jacob Zuma’s fate continued, the rand started the day yesterday on the back foot before rebounding slightly against the dollar in late trade.
The market has been positioning itself for Zuma’s departure, especially after the postponement of the State of the Nation address (Sona) which was due to take place today and the make-or-break ANC national executive committee, which was cancelled at the last minute on Tuesday.
The rand was R11.96 to the dollar at 6.45am yesterday. By 5pm it was bid at R11.93. ANC president Cyril Ramaphosa said he was still locked in direct and “constructive” discussions with Zuma in relation to Zuma’s position as the president of South Africa.
Bianca Botes of Peregrine Treasury Solutions said the ANC was doing its utmost to clean up its house and compel Zuma to step down, but was coming up against resistance from the pro-Zuma faction of MPs within the governing party. “(Tuesday) saw the rand claw back some ground as US Treasury yields eased in conjunction with a global equity sell-off. “The SA Chamber of Commerce and Industry’s Business Confidence Index recovered to levels in 2015,” Botes said.