Rand tipped to keep riding the Biden wave

The rand is set to extend gains that propelled it to an eight-month high as markets heaved a collective sigh of relief at the end of a week in which Joe Biden unseated Donald Trump as US president. Traders hope this outcome will cause Trump’s “America First” policy to be rescinded and chaotic policy-making to end, including that which led to a damaging trade war with China.

From R16.40/$ in early trade on Tuesday, when it slid more than 2% as Trump won the key states of Texas and Florida, the rand ended at R15.58/$ on Friday, the best close since March 4 and 4.1% stronger than seven days earlier.