South Africa's rand touched 11.66 against the U.S. dollar late on Wednesday while President Jacob Zuma was delivering his resignation speech, clocking the strongest mark it has been since 2015, but later firming at 11.70 after the speech.
In a late-night address, Zuma resigned under pressure from the ruling African National Congress (ANC), leaving office after more than eight-scandal ridden years and a week of tense negotiations to secure his exit.
"I have therefore come to the decision to resign as president of the Republic with immediate effect, even though I disagree with the decision of the leadership of organisation. I have always been a disciplined member of the ANC," Zuma said.
The last time the rand breached 11.79 was two and half years ago. It is widely believed that Zuma's resignation will instil confidence in the markets and further strengthen the local currency.
The ANC had given Zuma a deadline to resign or face a motion of no confidence in Parliament on Thursday.
At lunchtime, when the ANC parliamentary caucus was given the mandate to vote Zuma out if he does not resign, the rand quickly inched closer to recording its strongest levels in years, hitting 11.80 before stabilising at 11.82.
But it later retreated to 11.90 when Zuma appeared in a televised interview where he remained defiant and said calls for him to step down were unfair.
The local currency had fallen to 11.99 early on Tuesday as markets awaited the outcome of an ANC meeting on Zuma's fate, before climbing to around 11.88 later in the day after the party said it was recalling him.
Zuma, dogged by allegations of corruption since coming to power in 2009, was under growing pressure to step down ahead of the 2019 national elections.
His deputy Cyril Ramaphosa, a former businessman preferred by investors, is now set to become the country's new president.
The rand, which has strengthened significantly since the ANC elected Ramaphosa to succeed Zuma as party leader in December, has traded nervously in recent weeks as Zuma resisted calls to relinquish his post, insisting he has done no wrong.
- African News Agency (ANA)
