S’African Rand Slumps to Two-week Low

• S’African Rand Slumps to Two-week Low

South Africa’s rand weakened as much as 1.7 per cent on Wednesday to its worst performance in nearly three weeks after the ruling African National Congress said an early exit for President Jacob Zuma had not been discussed at a party meeting.

It later recouped some losses.

Initially hit by softening demand for emerging market assets as global bond yields picked up, the rand’s losses accelerated to a session-low 12.55 shortly after the ANC Secretary-General, Ace Magashule, told reporters Zuma’s removal was not on the agenda of a meeting of the party’s top decision-making body, Reuters reported.

It was later 0.87 percent weaker at 12.4450 per dollar.

The rand has swung between 12.2275 and the upper 12.50s for the first two weeks of the year, pushed and pulled by mostly rumour-fuelled bets of a Zuma resignation before his term ends in 2019.