Rand Weakens as No-confidence Vote Draws Closer

407
SHARE
Image: africa-me

The South African rand has weakened due to investors bet on a no-confidence vote by secret ballot against President Jacob Zuma could unseat him.

At 0650 GMT the rand was 0.13 percent weaker at 13.2375 per dollar compared with an overnight close of 13.2200 in New York. The rand rose to 13.1825 on Monday, it’s firmest since July 31, soon after the parliamentary speaker allowed a secret ballot in the opposition-sponsored vote taking place later on Tuesday.

Critics hope the secret ballot will have the vote of about 249 African National Congress lawmakers in the 400-seat voting against a president beset by allegations of corruption, which he has consistently denied.

According to Analysts, there is a slim chance that the motion would succeed but that the possibility was driving sentiment in the short term, and that trade would be subdued leading up to the vote.

Stocks were set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.2 percent.