The South African rand weakened in early trade on Friday, but was set for weekly gains after a rally in previous sessions driven by indications that Democrat Joe Biden edged closer to victory in a tight U.S. presidential election.
At 0637 GMT, the rand ZAR=D3 traded at 15.7500 versus the U.S. dollar, 0.45% weaker than its previous close.
But the unit is up more than 2% this week, helped by an increase in risk-taking.
“For now, we think the ZAR has had a very good run and could possibly give back some of the gains in the short term before making a run for better levels again,” said Andre Botha, senior dealer at TreasuryONE.
Biden edged closer to victory but votes were still being counted in key states, and Republican incumbent Donald Trump escalated efforts to cast doubt on the election’s integrity. bonds were firmer in early trade, with the yield on the benchmark instrument due in 2030 ZAR2030= down 5 basis points to 8.93%.