South African Rand Slows Rally

The South African rand slowed its rally after yesterday’s big jump. Despite the welcomed change of the financial minister, investors remained unconvinced about the government’s ability to tackled economic challenges that lay before it.

On Monday, South Africa changed its third finance minister in less than a week. Yet uncertainty about the future of the nation’s economy remains as it was made evident by the comments of Fitch Ratings (the agency that cut the country’s credit rating earlier this month):

The replacement of a second finance minister in South Africa within five days has not enhanced confidence in government effectiveness and leaves questions over the direction of economic policy.

This, coupled with expectations of an interest rate hike from the Federal Reserve, made the rand slow its advance.

USD/ZAR was down from 15.1075 to 14.8900 as of 10:46 GMT today.

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