Rand Retreated as US Election Weighs on Markets

Rand and Dollar Notes
Rand and Dollar Notes source:

The rand retreated against the dollar on Friday, as local political headlines that have boosted the currency this week took a backseat to global markets worries about the impact of next week’s US election.

Rand trades 0.24 % softer at 13.4900 by 0648 GMT compared with Thursday’s close at 13.4575. Stock futures index down 0.61 % signalling a weak start for the bourse at 0700 GMT.

Government bonds soften in line with rand, yield on 10-year benchmark adds 2.5 basis points to 8.67 %.

In Asia, Hong Kong stocks closed at a2-1/2-month low as worries over the upcoming US presidential election continued to keep investors on edge.

The Hang Seng index fell 0.2 % to 22,642.62, while the China Enterprises Index gained 0.1 % to9 491.51 points.

The indexes lost 1.4% for the week -their second consecutive weekly decline reflecting a bearish spill over from global financial markets with the US benchmark S&P 500’s falling for eight straight sessions in its longest losing streak since the 2008 financial crisis.
Most sectors in Hong Kong fell, with materials and consumer sectors leading the decline.

Risk appetites remained subdued as the US election day nears. Investors view Democrat Hillary Clinton as a candidate who will largely maintain the status quo, while a Donald Trump presidency will probably raise uncertainties for US foreign policy, international trade deals and the domestic economy.


Written by How South Africa

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