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%.
