Economists say the country can expect the rand to keep weakening until there is some sort of political stability.
The local currency plunged on Thursday after a report by the Section 89 independent panel found that President Cyril Ramaphosa may have been in violation of the Constitution and the law.
The rand reached R17.95 to the dollar on Thursday, showing over a 3% decline.
As the president’s fate hangs in the balance, economists say that political instability terrifies investors.
Economist Dale McKinley said that global markets tended to react when there was a form of unpredictability, which was reflected in the local currency.
“It’s notoriously unpredictable with currency markets in particular and it will probably continue this way for the next while so we can expect a bumpy ride ahead.”
Responding to reports of the rand stabilizing on Friday, economist Bonke Dumisa said that was not the case when comparing the local currency to where it was on Wednesday.
“As it is today, it opened at R17.56, there’s still a huge loss.”
Dumisa added that until the sitting on Tuesday took place, the rand might remain volatile.
-EWN
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