South Africa’s rand inched higher against the US dollar on Monday after the announcement that the country’s lawmakers will be allowed to vote in secret on firing president Jacob Zuma.
The rand extended earlier gains to 13.26 per US dollar, bringing it to an increase of 1.4 per cent so far on the day. Before the announcement, the currency was hovering at around 13.36 per dollar.
The decision to allow secret ballots in Tuesday’s vote is seen as increasing the likelihood that Mr Zuma could lose the latest no-confidence vote. That has seemingly cheered the markets, particularly after recent political turmoil prompted two of the three major sovereign rating agencies to junk South Africa.