The South African rand fell as much as 1.4 per cent against the dollar on Tuesday, reversing the bulk of its gains from yesterday after president Jacob Zuma narrowly survived a vote of no-confidence that would have forced his resignation.
Ahead of the vote, the currency had been up as much as 0.9 per cent, extending its 1.6 per cent gain from Monday to hit an 8-day high of ZAR 13.11 per greenback. The rally was triggered by the surprise news yesterday that the country’s lawmakers would be allowed to cast their ballot in secret, fuelling hopes that Mr Zuma and his scandal-hit administration would be removed from office.
But that proved overly optimistic, and investors are taking out their disappointment on the rand.
The currency is trading at ZAR 13.40 at pixel time, or 1.4 per cent lower.