JOHANNESBURG: South Africa's rand raced to a four-week high against the US dollar on Tuesday on a media report that the ruling African National Congress (ANC) will discuss the removal of President Jacob Zuma at a major party meeting this weekend.
ANC's spokesman Zizi Kodwa denied the report, saying it was "a complete fabrication and not true".
Stocks were slightly firmer.
By 1505 GMT, the rand traded at 13.0575 per dollar, 1.45 percent firmer than its overnight close.
The unit firmed to 13.0175/dollar earlier in the session, its firmest since April 25, according to Thomson Reuters data.
"That news of the ANC possibly speaking about the removal of Zuma definitely gave it a kick," said TreasuryOne currency dealer Phillip Pearce. "It's an over-reaction in my opinion".
Opposition to Zuma inside the ANC and from opposition parties and civil society groups has swelled since he axed respected finance minister Pravin Gordhan in late March, triggering credit downgrades to "junk" by two rating agencies.
In fixed income, government bonds firmed with the yield for the benchmark instrument due in 2026 dipping 6.5 basis points to 8.56 percent.
On the bourse, the benchmark Top-40 index rose 0.1 percent to 48,046 points and the broader All-share index was also 0.1 percent higher at 54,549 points.
Financial stocks were buoyed by the firmer rand as they are among the most exposed companies to South Africa's economy and a firmer currency makes it easier to satisfy their capital requirements, said Independent Securities trader Ryan Woods.
Standard Bank was the biggest gainer among the blue-chips, climbing 3.6 percent to 150.62 rand, followed by Nedbank, which rose 3.3 percent to 221.38 rand.
Shares in Sasol were up 1.2 percent at 412.45 rand after the petrochemicals firm said it would maintain output despite an explosion at one of its plants on Monday.
Resource stocks were weaker, with BHP Billiton retreating 2.2 percent to 204.07 rand.
"As the currency firms up, they tend to weaken," said Woods, referring to shares of the mining firms which earn most of their income outside South Africa.
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