JOHANNESBURG - The rand was weaker against major global currencies in volatile trade on Monday afternoon, driven by sentiment emanating from the ANC conference at Nasrec in Johannesburg.
The market is closely watching to see whether Nkosazana Dlamini-Zuma or Cyril Ramaphosa becomes the party president.
The results are expected before the end of Monday.
The rand traded within a 20c range‚ strengthening to about R12.85/$ at 2.30pm.
The rand is still happy. Below R13 now to the dollar, its strongest since mid September— Carol Paton (@politicsblahbla) December 18, 2017
Earlier on Monday it had slipped back above the R13 mark.
The rand gained about 15c against the dollar on Friday afternoon‚ before the conference commenced‚ on reports that court rulings on the eligibility of certain delegates to vote had gone against Dlamini-Zuma.
On Monday morning‚ reports from the conference were that the leadership contest between Ramaphosa and Dlamini-Zuma was tight‚ with talk being that Ramaphosa had fewer numbers than expected.
Analysts expect that should Ramaphosa win the party leadership race‚ the rand could go back to levels seen before the cabinet reshuffle late in March‚ when Pravin Gordhan was fired as finance minister‚ while the alternative could see the currency weaken beyond R14/$.
At 11.30am‚ the rand was at R13.0496 to the dollar from R12.9651‚ at R15.3897 to the euro from R15.2362‚ and at R17.4215 to the pound from R17.2759.
The euro was at $1.1792 from $1.1745.