UPDATE: Rand reverses gains on Zuma recall

Cape Town - The rand, which firmed 0.5% after the ANC confirmed its decision to recall President Jacob Zuma, gave up the gains and more on uncertainty when Zuma will resign.

By 15:10 the local unit was trading 0.24% weaker at R11.97 to the dollar from R11.88 shortly after the announcement. The rand was treading water for most of the day, trading in a narrow band between R11.90 and R11.94 to the greenback.

Political Futures Consultancy director Daniel Silke said in a snap note that Zuma is now isolated. "He can delay - but his political demise has virtually been signed today.

The rand advanced in early trade on Tuesday despite Zuma refusing an order from the ANC's Top 6 to step down voluntarily. The unit’s advance since December 18, when Cyril Ramaphosa was elected ANC president, is the strongest out of 16 major emerging market peers.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.