The South African rand held its gains in early trade on Tuesday, as caution prevailed in the hours ahead of voting beginning on the U.S. presidential election day.
At 0615 GMT, the rand ZAR=D3 traded at 16.2100 against the U.S. dollar, 0.14% firmer than its previous close.
“The financial markets are likely to exercise extreme caution today as the much anticipated U.S. elections get underway,” Nedbank analysts said in a note.
“The rand has thus far continued to encounter U.S. dollar buying interest around the 16.20 technical level; although it is currently straddling that level, the next target beyond this is around the 16.0000 level.”
Election polls show U.S. President Donald Trump closely trailing Democrat Joe Biden, but the race remains close in several battleground states. fixed income, the yield on the benchmark government bond due in 2030 ZAR2030= was up 0.5 basis point to 9.385%.