Rand surges on anticipated Joe Biden win

JOHANNESBURG – THE RAND SHONE yesterday and was expected to make further gains following a risk-on sentiment yesterday as investors dumped the dollar in anticipation of a favourable US presidential election outcome.

The market began pricing in the fact that Joe Biden would likely be the new US president as the incumbent Donald Trump’s move to challenge vote counting in the key states deepened sentiment of his impending loss.

The rand appreciated 0.24 percent to R15.78 against the dollar, its best level since March as it derived strength from a weaker greenback.

FXT’s Lukman Otunuga said the market was pricing in the prospects of lower stimulus spending for the US economy if Biden wins with a divided Congress, something that continued to weaken the dollar.

Otunuga said the sentiment would offer further support to the rand.