Zuma Premium Dissipating as Rand Trades Near Key Level: Chart

The tide may be turning for South Africa’s rand as commodity prices recover and investors move on from the events of December, when President Jacob Zuma fired Finance Minister Nhlanhla Nene and replaced him with a little-known lawmaker, sending the rand to its weakest level on record against the dollar. The currency is back near 14.62 per dollar, where it traded before the president’s shock move on Dec. 9, suggesting that the so-called “Zuma Premium” is dissipating. A break below that level could augur further gains, according to Johannesburg-based Rand Merchant Bank.

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