South African rand steady as investors wait to hear Zuma's fate

JOHANNESBURG (Reuters) - South Africa's rand steadied against the dollar early on Tuesday as investors waited to hear whether President Jacob Zuma will resign as head of state after reports that the ruling African National Congress (ANC) had instructed him to step down.

At 0645 GMT, the rand traded at 11.9300 per dollar, not far off its close of 11.9200 on Monday.

The rand’s fortunes have been closely tied to political outcomes over the past couple of months, with the currency rallying on any sign of an end to the corruption scandals and economic decline that have tainted Zuma’s time in office.

The ANC said it would hold a media briefing later on Tuesday to announce the outcome of its national executive committee's overnight meeting to discuss Zuma's political future.

A senior ANC official told Reuters the party has decided to "recall" Zuma - ANC-speak for 'remove from office'.

Domestic media have speculated that Zuma might yet defy the party's wishes, forcing it into the indignity of having to unseat him in parliament.

Stocks were set to open flat at 0700 GMT, with the JSE securities exchange's Top-40 futures index barely changed.

(Reporting by Olivia Kumwenda-Mtambo; Editing by Eric Meijer)

2018-02-13 09:41:12

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