Rand continues to weaken amid uncertainty over Gordhan

As questions remain about Finance Minister Pravin Gordhan’s future, the local currency has weakened above R13 to the dollar.

Picture: EWN.

JOHANNESBURG - The rand has continued to weaken against the major currencies.

As questions remain about Finance Minister Pravin Gordhan’s future, the local currency has weakened above R13 to the dollar.

On Monday, the Presidency said it ordered Gordhan and his deputy Mcebisi Jonas to cancel an international investor roadshow.

This led to speculation that President Jacob Zuma was preparing to move against Gordhan.

The rand had been at levels of about 12.30 to the Green Bank on Monday morning before Gordhan and his deputy were ordered by President Zuma to return home.

The local currency hit the R16 to the pound level on Monday after the announcement by the Presidency and weakened substantially thereafter.

There’s a similar scenario for the euro, with the rand weakening above the R14 level.

The bank index, which started positively earlier on Wednesday, has also now entered negative territory.

It lost more than 3% on the JSE on Monday.

(Edited by Winnie Theletsane)