South African rand slips on stronger dollar, local election vote count advances
- The rand traded at 16.5275 against the U.S. currency , down 0.3% on its previous close
The South African rand weakened as municipal election results revealed a significant drop in support for the ruling ANC, sparking concerns about future economic stability and governance.
- Impact of municipal election results on the rand's performance.
- Decline in voter support for the African National Congress.
- Economic implications of election outcomes for cities and business.
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 vote, down from 46% at the last municipal elections in 2021.
Its nearest rival the pro-business Democratic Alliance was on about 24% of the vote, electoral commission data showed.
Bureau for Economic Research chief economist Lisette IJssel de Schepper said the key economic issue was whether the elections lead to more stable administrations in key cities, better service delivery and a stronger environment for business.
The US dollar gained over 0.3% against a basket of currencies, drawing support from safe-haven demand after a selloff in AI stocks worldwide.
South Africa’s benchmark 2035 government bond was marginally weaker in early deals, as the yield rose 4.5 basis points to 8.33%.