Rand cheers surprise moveZuma drops bid to halt state capture report The South African currency, linked to the Namibia dollar, strengthened to below R13.50 to the US dollar yesterday upon surprising news from the presidency. The rand has cheered President Jacob Zuma''s withdrawal of his interdict to halt the release of the public protector''s report into state capture by his close friends the Guptas, strengthening to below R13.50/$.Zuma''s surprise move came as pressure mounted from politicians, business leaders and the public and as thousands of people took to the streets to demand an end to corruption and state capture.
By 11:45 the local unit was trading 1% firmer at R13.48, from its overnight close of R13.61 in New York. It earlier traded as low as R13.42/$.
The rand started its latest surge after the National Prosecuting Authority on Monday dropped fraud charges against finance minister Pravin Gordhan and his two co-accused, Ivan Pillay and Oupa Magashule.
On 11 October, when the NPA announced it would charge the trio, the rand skyrocketed to R14.36 against the dollar.
The political noose is now beginning to tighten around Zuma''s neck, said political analyst Daniel Silke.
“Multiple pressures are mounting to shorten his longevity in office as a confluence of forces mobilises to unseat him.
“ANC politics is today entering a dramatic and somewhat combustible era in which a variety of interests will pitch for power and access to resources, while others will seek a broader coalition around the national interest and a possible reboot of not only ANC politics, but broader economic policy too,” he said.
NEWS24