Rand takes a knock after Gordhan summoned by NPA
At 11am, the rand traded at R14.24 to the dollar, R15.81 to the euro and R17.51 to the pound.
JOHANNESBURG - The rand has lost three percent of its value against the dollar following news on Tuesday morning that Finance Minister Pravin Gordhan had been served a formal summons by the National Prosecuting Authority (NPA) for his involvement in the so-called rogue unit at South African Revenue Service (Sars).
The rand was the second highest emerging market currency after the Mexican peso yesterday due to a return in risk appetite.
But today, the currency fell in a matter of minutes by as much as three percent when NPA head Shaun Abrahams announced Gordhan was being summonsed to appear in court next month.
At 10am, the rand was trading at R13.91 against the dollar before weakening to R14.24 after Abrahams' announcement.
By 11am, the rand traded at R14.24 to the dollar, R15.81 to the euro and R17.51 to the pound.
WATCH LIVE: NPA head Shaun Abrahams briefs the media on the Gordhan summons
Reports of the possibility Gordhan's arrest earlier this year also sent investors scurrying, as they raised concerns about the country's fiscal direction.
The rand was forecast to reach a level of 13 to the dollar before year-end.
(Edited Shimoney Regter)