JOHANNESBURG (Reuters) -South Africa’s rand edged higher on Tuesday after the release of a local purchasing managers’ index and as the United States headed to the polls to elect its next leader.
At 1523 GMT, the rand traded at 17.445 against the U.S. dollar, up 0.33% from its previous close.
The dollar last traded about 0.3% softer against a basket of currencies.
South Africa’s private sector maintained its growth trajectory in October, bolstered by a decline in business costs and selling prices, a PMI survey showed.
Global investor focus is firmly on what is expected to be a tight race between Republican candidate Donald Trump and Democrat Kamala Harris.
The outcome of the vote may not be known for days.
“The Federal Reserve’s decision to cut rates, anticipated on Thursday, will likely add further volatility to an already tense market atmosphere,” said Wichard Cilliers, director and head of market risk at TreasuryONE.
The U.S. Federal Reserve is expected to cut rates by 25 basis points on Thursday.
On the stock market, the Top-40 index closed nearly 0.6% higher.
South Africa’s benchmark 2030 government bond was marginally weaker, with the yield up 1 basis point to 9.315%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Sumana Nandy and Franklin Paul)
