Wednesday, November 6, 2024
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South African Rand Strengthens Ahead of U.S. Election and Fed Rate Decision

Rand Rallies as U.S. Election and Fed Rate Decision Loom

The South African Rand Strengthens Ahead of U.S. Election and Fed Rate Decision rand appreciated in early trading on Monday against a weaker dollar, as investors prepared for the upcoming U.S. presidential election and the Federal Reserve’s interest rate announcement this week.

As of 0613 GMT, the rand was trading at 17.5250 against the U.S. dollar, marking a 0.8% increase from its previous close. Meanwhile, the dollar was approximately 0.2% weaker against a basket of currencies.

“The U.S. presidential election on November 5 is the key event this week, overshadowing even the Federal Reserve’s interest rate decision scheduled for two days later,” stated Jee-A van der Linde, senior economist at Oxford Economics, in a research note.

With the world’s largest economy heading to the polls on Tuesday, Republican candidate Donald Trump and Democratic candidate Kamala Harris are nearly tied in opinion polls.

On Thursday, the market will be focused on the Fed’s latest rate decision, with investors anticipating a 25-basis-point cut.

“These factors will be the primary influences on financial markets this week,” van der Linde added.

In early trading, South Africa’s benchmark 2030 government bond remained stable, with a yield of 9.32%.

 

Vivian Akinyosoye
Vivian Akinyosoye is a seasoned journalist with a background in English Language and a Masters degree in International Law & Diplomacy. She officially began her career in journalism when she joined Channels Television Lagos Nigeria in 2000. Her work in Channels allowed her to hone her skills as a journalist laying a solid foundation for a successful career as a versatile reporter covering Human angle stories, Health, Aviation, Metrofile, Travels, Business and Finance. She served as State House Correspondent Abuja in her early years with Channels TV and has trained at the London Academy for Film, Media and TV. She also served briefly with Silverbird Television Lagos Nigeria before joining African Voices 1 Network Intl (AV1 News) where she currently serves as Lead Editor, Business & Finance.

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