Investing.com - The South African rand fell more than 2% against the dollar on Tuesday, adding to losses from the previous session amid rumors that the country’s finance minister could be replaced in a cabinet reshuffle.
USD/ZAR hit highs of 13.10 and was last at 12.99, up 1.98% for the day after jumping 2.5% on Monday.
The selloff in the rand came after Finance Minister Pravin Gordhan was dramatically called back to South Africa, from a trip to meet investors in the UK and America.
The news sparked speculation that Prime Minister Jacob Zuma was planning a cabinet reshuffle.
The pair have clashed in recent months; with Gordhan under pressure from Zuma to increase government spending and borrowing that he says will help tackle racial inequality and widespread poverty.