You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Rand buoyed by Biden to best level in months

Win by Democrat leader likely to see local currency strengthen further.
A measure of stability after the erratic behaviour of the past four years would support riskier assets. Image: Jason Alden, Bloomberg

South Africa’s rand is now trading below the key R16 to the dollar level, buoyed by the prospects of a Joe Biden win against Donald Trump in the closely contested 2020 US presidential race.

The rand hit R15.83 to the greenback at around 20:35 on Wednesday night, its best level since the first week of March. It eased a bit to around R15.87 later – but was still trading over 1% stronger against the dollar on the day.

It was a seesaw day for the currency after it first broke through the R16 level to the dollar on Tuesday.

Intraday rand to US dollar movement

The rand weakened some 2% in morning trade on Wednesday to R16.40 to the dollar at 09:50. However, it ended the day stronger and is likely to strengthen further this week if Biden wins.

A Biden win is expected to see the dollar weaken as he has promised a larger Covid-19 US economic stimulus package. The Democrat leader is also anticipated to end Trump’s trade war with China.

“It is expected that a Biden win would most likely bring some stability versus the erratic behaviour we have come to know from Trump, and, as a result, support riskier assets,” said Bianca Botes, executive director at Peregrine Treasury Solutions.

“A sustained break below R16.00 will open the door for the next big technical level of R15.75 [against the dollar],” she added.

“In the near term, however, we can look to more volatility until the election result is confirmed and certainly there will be greater instability to come if the election is contested by Trump,” noted Botes.

The rand touched R15.82 to the dollar on Thursday in mid-morning trade but continued to fluctuate around the R15.85 range.

Andre Botha, a senior dealer at TreasuryONE said in a note on Thursday morning that the dollar “is trading mixed” but “mainly a touch weaker with emerging market currencies very much on the front foot”.

He expected the rand to continue to track the rest of the emerging market moves against the dollar until there is certainty over the US election outcome.

“Joe Biden appears to be edging closer to winning the US presidential election as he needs only to win in Nevada to clinch the 270 electoral college votes required. However, Donald Trump is launching numerous legal challenges contesting the results in various states, which could delay any final confirmation of the election outcome for some days, and we could still see some volatility in markets,” said Botha.

Please consider contributing as little as R20 in appreciation of our quality independent financial journalism.

AUTHOR PROFILE

COMMENTS   33

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

Go Joe!!! So much for the doom scenarios that a Biden win will lead to overall economic collapse. Trump’o’nomics is volatile as no-one knows what the narcistic lying fool will do next. The markets love predictability and Dems will give them a lot more of that than the hijacked GOP.

Yes, nothing like a dementia suffer as president, who will be replaced by his extreme left, socialist running mate when he inevitably becomes too feeble-minded to continue, to inspire confidence in the economy. The Demo Rats are already licking their lips to rejoin the climate accord, so as to extort extra taxes.

LOL somebody is very, very butt hurt, shame man.

Say cheerio to Orange Man!!!

Better luck next time, Hillary sends her regards LOL !!

Nope, I’m not a fan of either candidate, just pointing out that both are grossly flawed and liars. Do try to free yourself from your simple-minded, binary thinking trap by reading more, please?

You must live in a very twisted universe to have such a view of what the rest of the world is clearly seeing as good news. For the US, for South Africa and for the planet as a whole.

Donald Trump has spewed his toxic bile for four years. He has undermined the US democratic process at every turn, and now he’s getting his comeuppance. The American people have rejected his brand of hate and fear. It’s time he started packing his bags and I would strongly recommend they count the White House silverware before he leaves.

He should also start planning his next reality TV show: The Trials of Donald Trump.

Incitatus:

Trump lovers like to call Democrats socialist, as an insult.

Would you care to calculate the US electoral college outcome based on each state’s actual socialist leaning?

Thre is an easy adjustment : tax dollars given as percentage of tax dollas taken. So Florida for example receives $1.24 from DC for every $1 it pays DC. NewJersey (that liberal socialist den) in turn receives 82c for every dollar it pays to DC.

If votes were adjusted for who actually receives how much in handouts, the presidential election would be 80:20 split. The redneck states are basically begging bowls.

@Dr Gonzo – enjoy paying more and more taxes in a futile attempt to control climate change which has far more to do with solar cycles than CO2.

@Johan Buys – go and read up on Kamala Harris’s politics and then tell us again she’s not a socialist.

Some of Harris’s loony left ideas:

Six months fully paid leave for “gender issues.” (Even Bernie Sanders, who came up with the idea, only suggested three months.)

A ten trillion dollar climate extravaganza. Guess where that ten trillion is going to come from? Yes, taxes.

Supporting the even more loony left Alexandra Ocasio-Cortez on a “climate equity” bill.

Professing support for eliminating private health insurers entirely. (Do you support SA’s NHI, Johan Buys?)

The national legalization of dagga.

Supports open borders and no more criminal prosecutions of immigrants. She likens the border police to the KKK.

Wants companies to be “equal pay certified” in terms of the alleged gender pay difference.

While it’s all good and well to feel so self-satisfied with your oh-so-liberated virtue signaling, the facts are there for all to see.

The US election is pure Kabul theatre. Regardless of who wins nothing will change. Lord help the middle east and all poor countries populated with brown people if Biden and Caramel win. More wars and drone assassinations initiated under Ubama the peace prize winner than any other president.

Biden is a razor blade compared to Trump who is as dense as thrice recycled cardboard. He cannot even remember who he has had sex with and also doesn’t understand how election counting works. You’re the dude that needs to do some reading – try some of the works of PJ O’Rourke (a self-proclaimed die hard Republican).

Anyway, the counting isn’t yet over but Wall Street is waiting with bated breath for the Dems to win, as is the majority of USA voters.

As for lying fools my vote goes to the lying media who are actively trying to suppress the devastating contents of the demented old fool’s son’s laptop. Or try the senile old git who alleged that he visited Mandela…..while on a trip to Johannesburg, 1400km away from where Mandela actually was.

Sermonising people about binary thinking while launching all-out ad hominem attacks on Biden and citing uproven allegations as fact says a lot about the Trump-mindset (I also note the number of likes to your bitter spewing). I’m no leftists but the Conservatives kneecapped themselves by bringing an unhinged serial liar into the Whitehouse (no doubt you will no accuse me of ad hominen attacks; while both facts are objective provable). The big loss in all this is the middle however – Trump was a big move by the GOP to alienate those who are supposed to keep things in balance. Good riddance (I hope!).

Relax Incorrectus.

Neither your hero Trump (Africa is a sh@thole) or Biden gives a hoot about South Africa.

Why do you get so worked up my good man, they don’t care about you or I or our country.

Do you seriously want to compare the integrity of the children of the candidates?

Also, think (if u can) carefully about comparing a few Biden gaffes to the 1000’s from Orange Man. No computer has enough 0’s and 1’s to do a full list, but here are a few choice pointers – ‘crowd size comparisons’, ‘Nambia’, ‘bleach’, ‘having the best memory in the world’, ‘mexico will pay’, ‘sharpies and weather maps’…, it really is a long litany of BS and idiocy in equal measures.

Trump must stick to reality shows.
He did nothing for South Africa.

Trump is a bombastic idiot and he populated the swamp instead of draining it. But,he also happens to be the first POTUS in 40yrs to not start a war. Unlike Barack Hussein Ubama.

Trump may be a bombastic fool but he is also the first POTUS to not start a war in 40 years. Moneyweb why did you not allow my first mention of this? Sorry to burst your Democrat bubble. Remember the 500000 Iraqi children murdered by USA that Madelein Albright, the Democrat, said were worth it!

I just fail to see how a Democratic win will be good for SA. Our best chance economically for some growth in SA is in resources. China is recovering nicely and almost back to pre covid growth levels. As demand for commodity exports increases at R16.50 to R17.50 we were well poised to possibly even expand our existing resource exports. A weaker dollar only supports a lower fuel price which is already off a low base. Sure the usual ‘ imports will be cheaper’ brigade will level that argument, however with so little growth (actually shrinkage) in the economy one can only question, how much equipment and machinery is actually imported and how many companies will not import solely because of the exchange rate as opposed to the economic mess in SA.

The uncertainty from the Republicans on economic policy created more opportunities for us. The Democrat stimulus package will support a higher gold price for the next few months and we better hope the dollar strengthens (rand weakens) when gold starts correcting towards the 3rd and 4th quarters next year.

The downside of a Biden win is that gold will drop to $1800 levels…a Trump win could have seen it go to $3000 in my opinion. Oh well, at least Democracy and the Planet will have a better chance with Trump gone – holding thumbs!

It seems that the days when the price of gold had any significance to the ZA economy are gone, decades ago.

If I may digress: Once, in the 1960s and 1970s, we produced 70% of the World’s gold, it was very important; however now we are way down the list of gold producers.
(Specifically, we are ninth after China, Australia, Russia, USA, Canada, Peru, Indonesia and Ghana (10th is Mexico). Note the ones on this list that are not developed countries.)

A certain Mantashe has a lot to do with this, attacking miners as an enemy whereas in any other country the government sees the value of supporting wealth creating industries.

ZA should be looking at instruments such as virtual money like Bitcoin, but I think the technical concept may be a synapse junction too far.

The President of the USA is merely a figurehead. Trump has chosen to make his position a personal power hungry one.
Biden might seem, old and mentally feeble but he will leave the challenge of functioning government to competent able experienced people who can be trusted.
He will merely be a dignified figure who stands for all that was good in the US before Trump – Diplomacy,world peace, climate change initiatives, Minority protection, fair trade, infrastructure improvement, job creation, Dignity – all the components that made America great and the leader of the Free World…and all the things America lost under Trump.

I have watched Biden closely and do not see any evidence of him being feeble, apart from the odd verbal fluff, which anyone can make when you’re talking as much as they do on the campaign trail. I think it’s pretty insulting to anyone over the age of 70 to automatically paint them as mentally diminished. I would never disrespect my elders in such a way. This is all part of a problem that society has with elderly people. They shut them away in old age homes and allow them to wither away.

Under Covid-19 it has become far worse, all in the interests of keeping them alive. What’s the point of being alive if you’re a virtual prisoner? You need to stay engaged and active to keep your faculties sharp. Biden is plenty sharp enough to run the US. And more importantly, he has a rock solid moral compass. Something that was crushed in Trump from a very young age.

Or, it has nothing to do with the Runt and everything to do with dollar weakness due to the circus act election

That is it exactly. Seems usd down due to Biden. Where oh where does moneyweb get their ‘journalist’s’ from?

Mr Trump: you’re fired!

What a bunch of nonsense.
And most of the comments are even more inane.
As far as America is concerned, ZA is a pimple on a gnat’s backside.
A republican goverment (under Trump/Pence has been exceptionally good for my USA shares.
I feel under Biden/ Harris they may not do so well.
As far as dollar/rand is concerned, anyone wanting to make predictions should stick to horoscopes. You may have better luck predicting when Ace will be getting his orange overalls.

Joe, you made my day:” Pimple on a gnat’s backside”. I now have what my Dutch husband refers to as “de slappe lach”- uncontrollable laughter. Needed that! And I wholly agree with you.

What erratic behaviour are your referring to? The President of a country should put his country first. Why do you think he cares what happens in another country… it can be seen as erratic if you don’t understand the reasons why a President implements a policy

Click-bait heading.

“Rand buoyed by Mainstream Media to best level in months” is more correct.

A good time to transfer Rand overseas : dont miss it !!!

If the Rand continues to improve even I will vote for the democrats even though they look like martians.

Trump did nothing for South Africa, on the contrary he hurt our economy.
Go home Trump

Ace M – FU and your family

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles: Advanced Search
Click a Company: