The rand weakened against the dollar in on Tuesday afternoon when the ANC confirmed that the national executive committee (NEC) did not support the call for President Jacob Zuma to step down.
The rand weakened more than 2% on the news‚ to R14.0830 to the dollar‚ before regaining some of its losses.
At 3.30pm the rand was at R13.9904 to the dollar from R13.7216 on Monday. It was at R14.7897 to the euro from R14.5640 and at R17.4535 to the pound from R17.0391.
The euro was at $1‚0573 from $1‚0614.
A stronger dollar also led to negative sentiment toward the rand‚ but analysts said political factors remained an important driving force for the local currency ahead of S& P Global Ratings’s announcement on Friday.
The euro was weaker on market jitters ahead of Italy’s referendum on Sunday about constitutional reforms‚ which may affect the country’s relationship with the EU.
Analysts expect the rand to remain volatile over the short term.
“Zuma’s removal now‚ or at some future date‚ is not going to weed out the deepening rot in key structures of the party‚ in the NEC‚ in government and in critical areas of state capture‚” NKC analysts said.
ANC Secretary-General Gwede Mantashe said there were “robust‚ difficult and candid” discussions about Zuma’s leadership. But the ANC felt it was “more urgent to direct energy at working on the unity” of the party.
Mantashe said there was no vote on the motion tabled at the meeting as the ANC NEC never went that route on anything‚ instead it rather concentrated on debating issues.
– TMG Digital/BusinessLive