South African Rand Boosted to 3-Year High Against U.S. Dollar After Zuma's Resignation

South African stocks were boosted on Thursday by as much as 5 percent (biggest one-day gain in more than three years) after the resignation of Jacob Zuma, South Africa's president of nine years.

Market participants perceived Zuma's resignation as a net-positive for South Africa's economic growth prospects.

Zuma's reluctant exit was also sharply reflected in the strengthening South African rand. In the wake of Zuma’s exit, the rand soared to its highest level against the U.S. dollar since February of 2015. On Friday, the rand was trading at a 3-year high of 11.5575 against the USD.

Shares of South African banks, which are widely viewed within economic circles as a barometer of economic strength, rose considerably in the aftermath of Zuma's exit. The banking index jumped higher by almost 6 percent.

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