The rand slumped in early trade on Monday amid news that the condition of former president Nelson Mandela was critical and investors’ flock back to the greenback as the US Federal Reserve wind up its quantitative easing this year.

The South Africa Presidency remains optimistic that doctors will do their best to make Mandela’s health improve. Mandela has been in hospital for more than two weeks.

The swing in the rand was triggered after the Presidency statement said that the latest on Madiba was that his condition has worsened over the past 24 hours and he’s now critical. And the ruling Africa National Congress (ANC) said its’ worried about Mandela’s deteriorating health condition.

The rand was at 09:49 on Monday trading at R10.26/$ from R10.2390, at Friday’s close it was at R10.2110

The currency of Africa’s biggest economy was bid at R13.4360/€ from its previous close of R13.3885 and was at R15.7598/£ from R15.7099 at its previous close.

The euro was bid at $1.3093 from $1.3103 at Friday’s close and $1.3233 at Thursday’s close.

According to a Monday ABSA Capital report, the rand managed to stop weakening on Friday.

The bank said: “We believe the local unit remains vulnerable to extended selling pressure‚ mainly because we think that emerging markets are likely to be susceptible to continued broad-based dollar strength as well as potential redemption risk into quarter end.

“Domestic risks‚ such as lingering labour tensions‚ tight electricity supply conditions and the possibility of another credit rating downgrade have by no means disappeared‚ even though they have been placed on the back burner due to the aforementioned heightened global concerns.”