South African Rand Bounces, Jumping More Than 1% vs. Dollar

The South African rand erased yesterday’s losses today, jumping more than 1% against the US dollar.

The currency dropped yesterday amid speculations that President Jacob Zuma is going to sack markets-favored Finance Minister Pravin Gordhan. Yet today, the rand bounced after the South African Communist Party formally objected to such plans, increasing uncertainty in the situation. It looks like political struggles are going to drive the South African currency in the foreseeable future.

USD/ZAR tumbled 1.27% to 12.8762 as of 11:26 GMT today.

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