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Rand Sinks, With More Weakness in Store

  • Currency slides as cracks emerge in ANC over Reserve Bank
  • Fibonacci chart suggests rand could test September high
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South Africa’s ANC Set to Lose Ground
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South Africa’s rand is on track for its worst week against the dollar since October, and technical indicators suggest more pain is in store for the currency amid rising political risks and concern about the country’s economic outlook.

Gross domestic product data released earlier this week showed South Africa had its worst quarterly performance since 2009 in the three months through March. Infighting within the ruling African National Congress over the mandate of the country’s Reserve Bank exacerbated losses as investors questioned whether President Cyril Ramaphosa has enough support to advance his reform agenda.