Political tension contributes to rand sliding against major currencies
The rand has taken a knock following reports of the NPA’s plans to arrest Finance Minister Pravin Gordhan.
JOHANNESBURG - Concerns over political stability and a number of overseas factors have been highlighted as major forces behind the rand losing ground.
At around 4pm, the rand was trading at around 15.65 to the dollar and 22.53 to the pound.
Political tensions appear to have taken their toll on the rand following a report in the Sunday Times that finance Minister Pravin Gordhan is set to be arrested in connection with the South African Revenue Service rogue unit.
This has been denied by the presidency but chief executive at Pan African Holdings, Dr Iraj Abedien says this has affected the rand.
LISTEN: Presidency responds to reports of Pravin Gordhan's imminent arrest
"It's the lack of certainty and stability within the domestic political market, particularly around the issues concerning the minister of finance."
He says Cabinet and President Jacob Zuma need to show that they support the finance minister.
"It's the elephant in the room, as they say, the proxy war that has been happening."
Talk of raising interest rates in the United States have also affected emerging market currencies, which are battling against a strong dollar.