Rand strengthens as NPA drops charges against Gordhan
The rand has strengthened considerably after the National Prosecuting Authority dropped fraud charges against finance minister Pravin Gordhan.
By just after 17:00, the rand traded 2.34% stronger against the US dollar at R13.54.
The rand surged to its strongest in four weeks following the announcement.
Efficient Group economist Francois Stofberg says: "The rand will act as a pendulum between the extremes of strengthening and weakening with the news of the charges that were laid against the finance minister."
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National Director of Public Prosecutions, Shaun Abrahams told the media that Gordhan, former SARS Commissioner Oupa Magashula and his deputy, Ivan Pillay will no longer be charged with fraud relating to Pillay's early retirement pay-out.
"In the absence of any other evidence in the contrary, I am satisfied that Mr Magashula, Mr Pillay and Minister Gordhan did not have the requisite intension to act unlawfully.
"I am of the view that this matter could easily have been clarified had there been proper engagement and cooperation between the Hawks and Mr Magashula, Mr Pillay and Minister Gordhan.
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"In the circumstances, I have decided to overrule the decision to overrule to prosecute Mr Magashula, Mr Pillay and Minister Gordhan on the charges listed in the summonses," Abrahams said.
The announcement comes just two days before the three were expected to make their first appearance in court.