🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

South Africa's rand firmer as U.S. election verdict dents dollar

Published 2018/11/07, 08:57
Updated 2018/11/07, 09:01
© Reuters.  South Africa's rand firmer as U.S. election verdict dents dollar
DX
-
ALSIU4
-
DXY
-

JOHANNESBURG, Nov 7 (Reuters) - South Africa's rand firmed on Wednesday, extending an overnight rally, as dollar buyers favoured caution and assessed U.S. mid-term election results to gauge the possible impact on policy and consequences for global growth.

* At 0640 GMT, the rand ZAR=D3 was 0.21 percent firmer at 14.0900 per dollar, having reached a one-week best of 14.0300 overnight as the Democratic Party wrested control of the U.S. House of Representatives from the Republicans. The dollar index .DXY was down 0.26 percent in early trade.

* "The rand is holding firmly onto its gains, as it wanders in territory last seen in October, while the dollar remains under pressure," said Bianca Botes, treasury manager, Peregrine Treasury Solutions.

* The rand is down nearly 15 percent against the greenback this year, but has made strides in recent weeks due to a return of global risk appetite and easing of local political concerns.

* With the 14.20 technical resistance level cleared, the currency is seen testing the 14.00 pivot, which could unlock further gains, traders said. Thursday's rate decision by the Federal Reserve will likely temper rand bulls in the session.

* Bonds also firmed, with the yield on government's 10-year paper ZAR186= down 2.5 basis points to 9.115 percent.

* Stocks were set to open flat at 0700 GMT, with the JSE securities exchange's Top-40 futures index ALSIc1 up 0.08 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.