The rand recovered almost 80 cents against the US dollar following the announcement that Pravin Gordhan had been appointed as the new finance minister.

The news saw the rand claw back some gains as it recovered from R15.88 to R15.09 to the greenback on Sunday. The rand briefly touched R16 on Friday.

Last week, President Zuma announced that he had removed Nhlanhla Nene as finance minister and had appointed David van Rooyen as his successor. Van Rooyen was sworn in on Thursday but the president made an about turn on Sunday when he re-appointed Gordhan to the post.

In a statement on Sunday, the president said that he had been asked to reconsider Van Rooyen’s appointment.

“I have received many representations to reconsider my decision. As a democratic government, we emphasise the importance of listening to the people and to respond to their views,” the president said in a statement.

“I have appointed Pravin Gordhan, the current minister of cooperative governance and traditional affairs as the new minister of finance. Minister Gordhan will return to a portfolio that he had held proficiently during the fourth administration.”