The South African rand continued to rise today, extending its rally caused by the Monday’s voting for the leadership of the ruling African National Congress.
As was expected, South Africa’s ruling party got Cyril Ramaphosa as a new leader. Markets considered him to be business friendly. Because of that, the rand was rising ahead of the vote as investors were betting on him getting the post. The currency continued to rally even after the fact as traders refrained from using the “buy the rumor, sell the fact” strategy. Yet analysts speculated that the rally may come to an end fairly soon as doubts emerge about Ramaphosa’s ability to resolve the nation’s issues.
USD/ZAR dropped 0.74% to 12.6129 as of 16:48 GMT today.
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