JOHANNESBURG (Reuters) -South Africa’s rand edged higher on Tuesday afternoon, as the U.S. currency weakened for a third straight session on global markets.
At 1532 GMT, the rand traded at 17.7150 against the dollar, about 0.1% stronger than its previous close.
The dollar index, which tracks the dollar against a basket of currencies, was down more than 0.3%.
ETM Analytics said the rand was tracking global drivers once again.
“The rand’s performance should be considered against a dollar that has surged to unsustainable levels,” they wrote in a note to clients.
Investor attention globally is focused on U.S. midterm elections. A conclusive result to the midterms could take days, but forecasts are for a Republican victory, at least in the House of Representatives, and consequently likely gridlock in Congress.
The Johannesburg Stock Exchange’s All-Share index ended about 0.6% weaker. The South African government’s benchmark 2030 bond rose slightly, with the yield down 2 basis points to 10.53%.
(Reporting by Anait Miridzhanian and Alexander Winning, editing by Ed Osmond)
