Rand extends gains in early trade

The rand held on to gains against the dollar on Tuesday after President Cyril Ramaphosa was re-elected as leader of the governing African National Congress (ANC) party.

At 09:25 GMT, the rand traded at R17.30 against the dollar.

The local currency jumped on Monday as Ramaphosa beat former health minister Zweli Mkhize to secure a second five-year term as ANC leader, clearing the way for him to contest the presidency again at 2024 elections.

ETM Analytics said in a note that the news of Ramaphosa’s re-election came as a relief to investors.

“All eyes will return to offshore developments, including global equity market performance, China’s unfolding Covid experience and the guidance from global central banks,” analysts said, suggesting a calmer end to the year.

The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 10.145%.