Ina Opperman
Business Journalist
2 minute read
6 Nov 2020
4:11 pm

US election uncertainty gives the Rand a boost

Ina Opperman

While Americans are still waiting for the appointment of a new president, the South African Rand is using the uncertainty to gain lost ground.

Photo for illustration: iStock

With the US elections generally supporting risk assets, the rand this week outpaced peers as best performer among the group of EMs we track. Local bonds also rallied more than peers, says dr Elna Moolman, head of macroeconomic, fixed income and currency research at Standard Bank SA. “However, despite this bond market rally, bond yields are only modestly below our year-end forecasts. In contrast, the Rand’s strength relative to our year-end forecasts is more pronounced. It is not only relative to our forecasts that the Rand’s outperformance seems even stronger than that of bonds – the Rand also appears quite...