Rand rallies as Trump bemoans 'stolen' US election

The rand has been on the front foot as the tightly-contested race for the White House leans in Democrat Joe Biden's favour.

The local currency was trading at R15.71/$ just after 16:30 on Friday, having tested below the R15.70/$ mark in overnight trade – and on the back of news that Biden had taken moved ahead of incumbent Donald Trump in the crucial state of Pennsylvania.

"The election result in the US is not official yet, but it looks very likely that Joe Biden will be the next president of the US. President Trump broke his silence and mentioned that he is going to the courts as he feels the election is being 'stolen' from him. This has not deterred the risk on feeling of the market and emerging market currencies rallied hard yesterday," said Andre Botha, senior currency dealer at TreasuryONE, on Friday afternoon.

"This is all on the back of the expectation that there will be excess USD liquidity that is going to do the rounds and needs a home. For now, we think the ZAR has had a very good run and could possibly give back some of the gains in the short term before making a run for better levels again."

Bianca Botes, Executive Director at Peregrine Treasury Solutions, similarly commented earlier that the rand's strength was being driven by the potential of a Biden win. "The Federal Reserve is adding to the momentum, indicating that governments and central banks will have to do more to support the economy," she said.

Meanwhile, as eyes remained fixed on the election, US non-farm payroll numbers were better than expected in October, coming in at 638 000 against a forecost of 580 000. Unemployment, meanwhile, fell from 7.4% to 6.9%. 

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.19
(-0.20)
ZAR/GBP
20.29
(-0.02)
ZAR/EUR
18.10
(-0.17)
ZAR/AUD
11.16
(+0.19)
ZAR/JPY
0.15
(-0.15)
Gold
1802.80
(-0.30)
Silver
23.11
(-0.62)
Platinum
961.00
(+0.42)
Brent Crude
47.84
(+3.78)
Palladium
2328.00
(+0.08)
All Share
57761.92
(+1.08)
Top 40
53049.43
(+1.09)
Financial 15
11674.99
(+2.97)
Industrial 25
80126.12
(+0.26)
Resource 10
52568.48
(+1.54)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
22% - 321 votes
No, I did not.
51% - 754 votes
My landlord refused
28% - 409 votes
Vote