It is just two days into the week and the South African rand (ZAR) is already down more than 5 percent against the dollar. The rand is currently trading at 12.94 per dollar. The speculation that the President Jacob Zuma might sack finance minister Pravin Gordhan is fuelling the sell-off. Given the global admiration of investors for Mr. Gordhan, the sell-off is not unjustified.

Here, the Financial Times show previous Gordhan effects. We expect the rand to test supports around 14 per dollar area.

Here is the link to the FT article, https://www.ft.com/content/198e33dc-c9a1-38ef-b9c9-7999855ffb2a