JOHANNESBURG, The Rand continued to strengthen against a basket of major currencies Monday as the ruling African national Congress (ANC) was electing a new leader.
Results of the leadership election announced late Monday night showed that ANC and South African deputy president has been elected the new leader of the ANC, succeeding President Jacob Zuma.
The local unit strengthened around 2.5 per cent against the US dollar during trading hours before the ANC election results became known. It was trading at around 12,98 Rand to the dollar.
The Rand has maintained its relative strength, although market commentators had said there was still some caution as a win for Cyril Ramaphosa was not guaranteed — at that point in time.
Jeff Schultz, a senior economist with BNP Paribas South Africa, said the South Africa currency remained volatile during the day.
A lot of the volatility in the currency over the last session is probably driven by the domestic political environment, speculations over who is likely to take over the ANC leadership position,” he said.
“We saw the Rand open weaker this (Monday) morning. There is growing optimism that potentially we could see the market-friendly outcomes when the ANC leadership of the top six are announced later.
Source: NAM NEWS NETWORK