PRETORIA – The rand clawed back some lost ground on Friday afternoon, trading at R14.21 to the US dollar by 3.30pm after weakening to R14.37 against the dollar, R16.09 versus the euro and R18.70 against the pound by close of business on Thursday.
Investors seem to be watching the South African general election results with anticipation after business industry banked on the ruling ANC to retain its majority and deliver on its promises and policies.
Investec chief ecenomist, Annabel bishop, said the domestic currency had been trading in a relatively tight range during the elections, with no major global market news to influence it, while election results come in largely as anticipated so far.
“The yield on the R186 has ticked down slightly today on the interim election results, to 8.53 percent, from a close of 8.59 percent yesterday, as an ANC majority win, are regarded as likely fostering fiscal consolidation under a continued Ramaphosa led Presidency of South Africa,” Bishop said.
“Voter support shows similar results on the interim numbers for the key political parties so far to those identified as most likely amongst the recent polls on average.”
African News Agency (ANA)