WATCH: Rand stumbled after Nene’s request to resign

JOHANNESBURG – The rand initially weakened sharply against the USD during yesterday’s European trading session according to NKC Research. 

The South African currency stumbled after the Minister of Finance Nhlanhla Nene, reportedly asked President Cyril Ramaphosa to be relieved of his duties after admitting that he visited the Gupta brothers. The rand pared some losses later in the session as a spokesperson for Ramaphosa said that the president’s office was unaware of the Nene’s request. At the close of local trade, the rand quoted 0.2 percent weaker at R14.86/$, after trading in the range of R14.75/$ – R14.98/$. ZAR traded flat overnight. Expected range today R14.70/$ – R14.95/$.

The JSE All Share (-0.4 percent) ended lower yesterday dragged by losses in large consumer goods (-1.2 percent) and mining (-0.9 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.6 percent) traded lower. In local news, MTN (+2.6 percent) shares were lifted by news that the Nigerian central bank governor said the bank might reduce the amount which it had said MTN owes.