SA economists say strengthened Rand feeding off US elections
The Rand is stronger against the US dollar but we're told it's not only due to the presidential elections there.
The dollar has taken a knock as votes continue to be tallied for President Donald Trump and his challenger, Joe Biden.
The Efficient Group's chief economist, Dawie Roodt says the financial markets have been positively reacting to the possibility of a Biden win.
He says there are other factors at play for the Rand strength.
"There is a so-called risk-on sentiment globally which simply means that people are happy with the environment that the world finds itself in at the moment in.
READ: WHO sees new outbreak of polio, measles in children
He says usually under these sorts of circumstances, the South African currency, the rand appreciates. In the short term, the rand may even gain even further.
Economist, Mike Schussler of economists.co.za believes Rand's sustained strength will depend on what happens in the US election.
"In the short term what was is achievable without anything else happening, the rand can easily go to R15.50 and a little bit below that because of the uncertainty in America.
"But if America goes for a long term stalemate in the republicans and democrats, I think there's a chance that the dollar could decline a little and I think the rand could go back to a level of about R14- R14.50. I would then take that as an opportunity to buy my imports or make my overseas investments."
