South Africa’s currency, the rand, stayed steady on Thursday morning after facing sharp swings following Donald Trump’s win in the U.S. election.
According to Reuters, the rand was trading at 18.2400 against the dollar at 8:03 AM GMT, close to its previous value of 18.2450.
Reuters explains that South Africa’s September mining data, set to be released at 9:30 AM GMT, might reveal more about the health of the country’s economy, which is the most industrialized in Africa.
Over the past week, the rand has lost nearly 5% against the dollar because Trump’s policies are expected to boost U.S. growth in the short term but may also lead to inflation.
Interestingly, Reuters notes that the rand’s drop isn’t because of negative views about South Africa itself. Analysts from Rand Merchant Bank clarified that the sell-off is linked to the strong U.S. dollar affecting many emerging markets, not just the rand.
On the Johannesburg Stock Exchange, the Top-40 index dipped slightly by 0.1%, while South Africa’s 2030 government bond yield remained stable at 9.15%.
As Reuters highlights, this situation reflects global trends rather than specific local challenges.