Rand edges closer to upper limit of its trading range as market bets on Clinton
The rand was supported relatively well in early afternoon trade on Tuesday, with changing sentiment suggesting it was likely to break out of its recent trading range against the dollar. During the afternoon, the unit edged towards R13.30 to the dollar, an upside barrier. Commentators say the market is betting Democratic presidential candidate Hillary Clinton beats Republican rival Donald Trump. "Markets respond with volatility in times of uncertainty, but with early polls showing a lead emerging for Hillary and the Democrats, uncertainty seems slightly tamed, forcing markets higher," said Jean Hamann, portfolio manager at Korner Perspectives. "The near-term event risk of a Donald Trump victory in our view seems to have diminished." The rand rallied along with other emerging-market currencies such as Mexican peso, touching R13.32 against the dollar in late trade. Sustained rand strength has tempered consumer inflation, but nonetheless is rose above the Reserve Bank’s upper target lim...
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