Rand rises after Hillary Clinton emerges as US presidential debate winner
The rand strengthened slightly on Monday morning after Friday’s disappointing US employment data and support by the presidential debate favouring emerging markets.
The presidential debate that took place in the early hours of the morning favoured US Democratic nominee Hillary Clinton over Republican Donald Trump.
TreasuryOne head of dealing Wichard Cilliers said the presidential debate was causing further volatility in emerging markets‚ “especially with the Mexican peso‚ with Clinton leading the way“.
“The Mexican peso is considered a barometer for [foreign-exchange] market views on Trump’s chances of winning‚ which has trimmed its advance after rising nearly 2% against the dollar‚ as the republican candidate was questioned over a video in which he could be heard describing groping women.
This gives Clinton much ground to stand on as she edges up against Trump in the polls‚” said Cilliers.
Last week‚ the US nonfarm payrolls report noted an increase of 156‚000 jobs against expectations of 175‚000 jobs created.
“The odds for the Fed to hike in December have inched up to 64%‚” said Cilliers.
Nedbank analysts said that the rand would remain volatile but stronger against the dollar‚ with global majors upbeat after a weaker dollar.
At 11.31am‚ the rand was at R13.7755 to the dollar from Friday’s R13.9168. It was at R15.3891 to the euro from R15.4962 and R17.1018 to the pound from R17.1884.
The euro was at $1.1172 from $1.1179 previously. – TMG Digital/BDlive