Outside of the Russian Rouble, the Rand is the worst EMEA FX performer since 10 November. Economists at ING do not expect the USD/ZAR pair to trade at current levels near 17.50 for long.
President Ramaphosa faces proxy impeachment vote
“President Cyril Ramaphosa has been caught up in a scandal, whereby an independent panel has concluded he might have violated the constitution in the way he handled the investigation into the theft of cash at his property. The findings of that panel will today be put to a vote in the South African parliament – seen as a proxy impeachment vote for Ramaphosa.”
“We would have thought the rand would be trading a lot stronger were it not for this vote. But equally, if the vote goes through, USD/ZAR could easily be trading over 18.00 in thin December markets. In short, current levels near 17.50 may not last for long.”