Rand firms 1% on improved EM risk sentiment, election

South Africa‘s rand firmed 1% against dollar to 14.19 by 1055 GMT partly due to a surge in emerging markets and a smooth election in South Africa where the ruling African National Congress leads the vote count.

Emerging-market shares and currencies gained on Friday as renewed hope for progress in trade talks between the United States and China overshadowed an increase in tariffs for Chinese goods.

“A bit risk-on in the emerging market sector and also the outcome of the election,” said forex trader at Rand Merchant Bank Jan Sluis-Cremer, when asked about the rand’s move. 

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