Rand slides as traders await US midterms

The rand weakened in early trade on Wednesday, as traders awaited results from the US midterm elections.

At 10:23 the rand traded at R17.68 against the dollar.

“The US midterm elections are taking centre stage and are a closely-fought affair,” ETM Analytics wrote in a research note.

Results of the elections will decide whether the Democrats lose or retain congressional control halfway through President Joe Biden’s term, with investors expecting Republican gains.

ETM Analytics said the dollar could extend its losses on Wednesday, especially if the Republicans win a majority in the Senate and control more of the House.

On the stock market, the Top 40 and the broader all-share index rose more than 0.5% in early trade.

The government’s benchmark 2030 bond was firmer in early deals, with the yield down 2.5 basis points to 10.505%.

Source: moneyweb.co.za