JOHANNESBURG (Reuters) -South Africa’s rand gained on Monday against a weaker dollar, as investors geared up for the U.S. to elect its next president and the Federal Reserve’s interest rate announcement this week.
At 1522 GMT, the rand traded at 17.50 against the U.S. dollar, about 0.9% stronger than its previous close.
The dollar last traded about 0.3% weaker against a basket of currencies.
As the world’s biggest economy heads to the polls on Tuesday, Republican candidate Donald Trump and Democratic candidate Kamala Harris are virtually tied in opinion polls.
On Thursday, markets will look to the Fed’s latest rate decision, where investors expect a 25 basis-point rate cut.
“With the US elections and Federal Reserve’s policy meeting setting the market’s tempo, the rand is likely to experience further volatility,” said Angielee Pan, sales trader at IG Group.
“South Africa’s economy remains exposed as investors seek the sanctuary of safer assets, turning away from emerging markets like South Africa and thus heightening the rand’s exposure to shifting market sentiments,” Pan added.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed little changed.
South Africa’s benchmark 2030 government bond was slightly stronger, as the yield slipped 1.5 basis points to 9.305%.
(Reporting by Tannur Anders; Editing by Rashmi Aich and Ed Osmond)
