JOHANNESBURG: The South African rand dropped sharply against a surging dollar in early trade on Wednesday, as markets tilted towards a win for Donald Trump in the US election.
At 0714 GMT, the rand traded at 17.7950 against the dollar , down about 2.4% on its previous close.
The dollar was set for its biggest one-day rise since March 2020 and was last up 1.6% against a basket of currencies.
South African rand stable as markets gear up for US vote
“If Trump solidifies his lead, the USD could gain further, likely pushing USD-ZAR higher,” said Andre Cilliers, currency strategist at TreasuryONE.
South Africa’s benchmark 2030 government bond also slumped in early deals, with the yield up 11.5 basis points to 9.43%.
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