South African Rand Rises, Remains Under Pressure from Political Uncertainty

The South African rand rose a bit today, joining other currencies of emerging markets in a small scale rally, but remained under pressure from political turmoil in South Africa.
The MSCI emerging equity index rose a little on Thursday as various currencies of emerging economies profit from a halt in the US dollar’s rally. While the rand joined them, logging gains, the currency remains vulnerable due to political situation in the country. Finance Minister Pravin Gordhan was summoned to police, and many analysts believe that the actual reason for that was the tussle between the minister and President Jacob Zuma. The political conflict makes South African assets not particularly attractive to investors.
USD/ZAR was down 0.04% to 14.205 as of 22:41 GMT today.

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