South African rand slips on stronger dollar, local election vote count advances
JOHANNESBURG: The South African rand weakened against a firmer dollar on Friday as the vote count in this week’s municipal elections progressed, with results so far pointing to a further slide in support for the African National Congress. At 0655 GMT, the rand traded at 16.5275 against the U.S. currency , down 0.3% on its previous close. With 72% of votes counted, the ANC had secured about 32% of…
The South African rand experienced a decline against a stronger dollar on Friday as municipal election vote counts continued, suggesting a further erosion in support for the ruling African National Congress (ANC). The currency was trading at 16.5275 against the U.S. dollar, marking a 0.3% decrease from its previous close. With 72% of votes counted, the ANC had garnered around 32% of the vote, a significant drop from the 46% it secured in the last municipal elections held in 2021.
The Democratic Alliance, the main opposition party, was at approximately 24% of the vote based on electoral commission data.
Lisette IJssel de Schepper, chief economist at Bureau for Economic Research, emphasized that the economic impact of the election results could hinge on whether they result in more stable administrations, improved service delivery, and a more business-friendly environment in key cities. Meanwhile, the U.S. dollar strengthened by over 0.3% against other currencies, benefiting from safe-haven demand following a global sell-off of artificial intelligence (AI) stocks.
South Africa's benchmark 2035 government bond saw a slight decrease in early trading as its yield rose by 4.5 basis points to 8.33%.
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