Should current deputy-president Cyril Ramaphosa win, the rand is expected to\u00a0rally to below R13 per dollar – a level last seen in September, said Bloomberg citing\u00a0Rand Merchant Bank.<\/p>\n
In comparison,\u00a0victory for his main opponent – Nkosazana Dlamini-Zuma – could see the currency test the record-weak levels it posted last year.<\/p>\n
“Traders should brace for ‘explosive’ moves after the weekend,” said\u00a0John Cairns, a currency strategist at RMB.<\/p>\n
“The rand\u2019s strength in recent weeks – it has gained 7.3%\u00a0 against the dollar in the past month – suggests investors are pricing in a Ramaphosa victory. That may leave the currency vulnerable to a selloff should Dlamini-Zuma win.”<\/p>\n<\/div>\n<\/div>\n<\/div>\n
\u201cWe suspect that the rand\u2019s gains are going to abate and the market will be cautious going into the weekend given the decisive vote is due on Sunday,\u201d Cairns wrote. “But this does not imply stability; in fact, the opposite as nerves get drawn tight,” he said.<\/p>\n
Feedback from investors suggests the rand could gain as much as 3.6% on a Ramaphosa win, but slump as much as 15% on a Dlamini-Zuma triumph, Cairns said.<\/p>\n
The rand opened at R13.49 to the dollar on Thursday morning.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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