Rand beats R14/$ for first time since August as US midterms hurt dollar
The results from the US midterm elections appear to favour risk assets at the expense of the dollar
The rand strengthened to below R14 to the dollar for the first time in more than two months on Wednesday, setting the stage for a potential cut in fuel prices in December. The stronger currency comes as oil prices have moderated, after touching a four-year high in early October. The developments will help ease worries on the inflation outlook, thus taking pressure off the Reserve Bank, which has previously cited the rand as a key risk to inflation. The results from the US midterm elections appeared to favour risk assets at the expense of the dollar, which was weaker against virtually against every other currency. As predicted, the Democrats were on course to secure control of the House of Representatives while the Republications looked set to retain the Senate. Regarded as the proxy of sentiment towards emerging markets, the rand gained as much as 0.85% to R13.89 to the dollar, its best level since August 10, according to the Iress data.
Local bonds were just as strong, with t...