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Market Analysis

Rand firmer against the US Dollar, ANC surges closer to victory

Phumzile Ngcatshe

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JOHANNESBURG -The South African Rand got back to its best on Friday afternoon against the United States Dollar reacting to the general elections results.

With the Independent Electoral Commission yet to complete Wednesday’s national elections vote count, investors seem to be keeping a close eye on the developments.

Latest media reports reveal that the Rand gained some traction as it traded at R14.21 to the US Dollar by 3.30pm.

This comes after the South African currency weakened to R14.37/USD, R16.09/EUR and R18.70/GBP by close of business on Thursday as the results were still trickling in.

According to market analysts, investors seem to be watching the South African general election results with keen interest after the business industry banked on the ruling party, African National Congress (ANC), to retain its majority and deliver on its investor friendly promises.

On the other hand, it is reported that the danger for the Rand is that if majority support for the Ramaphosa administration is only narrow then markets could view him either as lacking a mandate, or as vulnerable to shying away from the tougher decisions.

Looking at the national election results, the ANC was enjoying a 57.73 % lead, the Democratic Alliance at 20.65 % and followed by the Economic Freedom Fighters at 10.5 % as at 17:35 on Friday.

Photo:Vukuzenzele

Phumzile is an experienced Journalist having launched his career in 2007. He has written for News24 Travel and a number of Football websites and publications covering the South African Premier Soccer League (PSL), African football such as the CAF African Cup of Nations and CAF Club competitions. He recently joined FX Magazine to offer more balanced and unbiased financial reporting.

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