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Rand at Risk With S. African Finance Chief’s Fate in Balance

  • Godongwana facing sexual-assault allegation; may step aside
  • Currency not pricing in political risk with volatility subdued
Enoch Godongwana
Enoch GodongwanaPhotographer: Dwayne Senior/Bloomberg
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South Africa’s rand faces a fresh challenge amid uncertainty about the fate of Finance Minister Enoch Godongwana, who’s battling allegations of sexual assault and may be forced to step down.

Should Godongwana be sidelined just two months ahead of a budget update, the rand would likely extend a decline sparked by concerns about Federal Reserve tightening that have boosted the dollar, said George Glynos, the managing director and chief economist at ETM Analytics.