South Africa's currency made signs of a recovery late last week after months of a downward spiral. The rand pushed to its best level in four months on Friday, and was the best performing global and emerging market currency during the week. Analysts attributed the rise to speculation that President Zuma could quit after a court found him guilty of using state resources to refurbish his home.  But the gains were short-lived after the President gave an apology over the weekend.  The situation remains volatile ahead of parliament's Tuesday debate over Zuma's impeachment.

After six years of wrangling over the President's Nkandla residence, it was the constitutional court that brought the mayhem to a blunt halt. The court found that the Public Protector was correct in her recommendation that President Jacob Zuma pay back some of the 16 million dollars used to carry out upgrades on his home. The ruling pushed the Rand to its best level in four months.

"The Rand reacted very positively. In fact all our local markets took it as a sign of confidence. We have had some opposite views. Some people are worried about political uncertainty but the majority definitely saw it as a positive event," John Cairns, reserach co-head of Rand Merchant Bank, said.

Business and investor confidence levels plummeted following Zuma's move to fire his finance minister in December last year. The Rand fell to historic lows pushing over R16 to the dollar. But market sentiment has turned and suggests investors are encouraged by the constitutional court ruling.

"This judgement shows that South Africa remains a very fully functional democracy and I think business people look for that. They look for predictability that procedures and rules are followed because human nature is prone to ugly things," Professor Mcebisi Ndletyana with University of Johannesburg said.

While the rand is also gaining on the back of a weaker dollar, there's widespread optimism that a change in South Africa's leadership is in the offing and may offer better prospects for the weak economy.

"It is possible that recent political developments will instill some confidence. But what I think we really need is for the budget deficits to be corrected, for global commodity prices to turn around. That would create a much more supportive environment for growth locally and you'd see that growing in line with business and consumer confidence," Cairns said.

In his judgement, the Chief Justice said the country's President had failed to uphold the constitution. A major victory for opposition parties that have said the President is unfit to rule South Africa. The ruling also presents grounds for the president to be impeached

The National treasury will now have to decide the amount the President needs to pay back in his personal capacity.

President Jacob Zuma's time in office has been marred from the start. The economy has taken a battering and South Africa is now at risk of losing its investment status. But there's widespread optimism that this constitutional court ruling will affect the change the country needs and restore confidence.