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By Dhivana Rajgopaul 
22h ago
JOHANNESBURG – The rand rebounded as markets repositioned for a Biden presidency amid a tumultuous US election race.
While hopes for a blue wave did not materialize, adding restrictions to the approval and implementation of Biden’s fiscal stimulus plans, markets anticipate a Biden-Harris victory in the very close race.
The rand will hold its own if Biden takes office in the US, as the fiscal stimulus plan (widening the budget deficit) will not only weaken the dollar and increase the prospects for higher imports from the US (weakening the account). current), but expectations are that a President will curb the dollar’s appeal as a safe haven.
We continue to expect a correction in the dollar from overvalued levels, while additional policy stimulus fuels the narrative of a weakening dollar. Also, the rand’s carry lure should become more attractive as investors demand a higher interest rate premium than that offered by the US.
At the close of local trading, the rand was trading at R15.88 / $ and has since strengthened further, staggering to the R15.7 / $ threshold this morning.
South African Stock Exchange
The JSE All Share (+2.92 percent) gained considerable ground yesterday with gains across the board, particularly the technology (+6.15 percent), gold (+4.53 percent) and industrials (+) sub-indices. 3.9 percent). In general emerging markets, the MSCI Emerging Markets Index traded flat after winning the previous session.
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