File Image: Jacob Zuma

CAPE TOWN - The rand weakened slightly on Tuesday midday after news broke that President Jacob Zuma would be recalled from his position as president of South Africa. 

The rand weakened slightly on Tuesday midday after news broke that President Jacob Zuma would be recalled from his position as president of South Africa. 

The rand stood at R11.91 to the dollar as news broke of Zuma's fate. The rand was at R16.52 to the pound and R14.70 to the euro. 

As the news hit the markets, the rand weakened to R11.94 to the dollar. The rand was at R16.62 to the pound and R14.75 to the euro.

The rand has been holding strong in early trade on Tuesday after news broke that the ANC would give President Zuma an ultimatum to step down as head of the nation.

This morning the rand was at R11.93 to the dollar, 16.60cents stronger than at the same time on Friday. It had gained as much as R11.88 earlier yesterday after a reporter from the SABC, citing confidential sources, said Zuma had agreed to step down.

Presidency spokesman Bongani Ngqulunga dismissed the report as “fake news”, and the rand subsequently gave back gains to near where it had been trading before the report.

“The market is waiting for some clarity on this matter, and amid all of this uncertainty and news flow the rand will continue to be volatile,” said ETM Analytics market analyst, Halen Bothma.

-BUSINESS REPORT ONLINE