Summarized by AI Model:google/pegasus-cnn_dailymail
The rand was at its lowest level since mid-August at 1533 GMT, trading at 18.1325 versus the dollar, down more than 1% from its last close.Since Trump won the U.S. election last week, the risk-sensitive rand has been extremely volatile and is expected to see significant losses for the third day in a row.With markets expecting Trump's proposals to result in both short-term economic growth and inflationary pressures, investors have flocked to positions perceived to benefit from the incoming U.S. administration. A higher dollar and declining gold prices weakened South Africa’s rand, which fell to a three-month low on Tuesday as markets pondered the implications of another Donald Trump presidency for U.S. trade relations and policies. The rand was at its lowest level since mid-August at 1533 GMT, trading at 18.1325 versus the dollar, down more than 1% from its last close. Since Trump won the U.S. election last week, the risk-sensitive rand has been extremely volatile and is expected to see significant losses for the third day in a row. With markets expecting Trump’s proposals to result in both short-term economic growth and inflationary pressures, investors have flocked to positions perceived to benefit from the incoming U.S. administration.
Tax reductions and tariffs are examples of possible policy changes.
The rand “remains on the defensive while investors try to understand what (Trump’s win) means for the dollar and for currencies quoted against it,” according to a research report from ETM Analytics. Positive local job data released Tuesday that showed the unemployment rate dropped for the first time in a year in the third quarter had little effect on the rand. In the second quarter, the unemployment rate dropped from 33.5% to 32.1% (ZAUNR=ECI). Manufacturing production for September (ZAMAN=ECI), opens new tab, decreased 0.8% year over year, making it another local factor that had minimal effect. The Top-40 index (.JTOPI) on the Johannesburg stock market opened the day 0.7% down.
