South African rand holds forth, as ANC heads for re-election

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South African rand holds forth, as ANC heads for re-election

On Friday, the 10th of May 2019, the South African Rand had bolstered more than 1 percent over hopes of political continuation, as the South Africa’s ruling ANC (African National Congress) had been headed towards a landslide national election victory.

According to the electoral commission’s website data last updated on Saturday (May 11th), the ANC had been holding a commanding lead over results of 94 percent of voting districts officially published so far, while the ANC had secured 57.7 percent of the vote with its main opposition, DA (Democratic Alliance) had been residing at 20.6 percent and its much-smaller opposition, leftist EFF (Economic Freedom Fighters) was at 10.5 percent.

On Friday’s market closure, the South African rand had rounded off the day 1.30 percent higher at 14.16 percent, while the South African currency had posted a weekly gain of 1.95 percent over rising optimism of political continuity.

Adding that the South African Rand might add further gains against the softening US dollar amid a growing optimism over the nation’s political re-polarization and an escalating China-US trade-war, TS Securities wrote in a client note, “The rand has already rallied a couple of percentage points from 14.45, with its strong run starting just before the vote and consolidating as the election outcome get clearer and more resilient to surprises”.