The South African rand weakened in early trade on Monday as caution crept in ahead of the U.S. presidential election, while a surge in global coronavirus cases continued to weigh on sentiment.
At 0615 GMT, the rand ZAR=D3 traded at 16.2525 versus the U.S. dollar, 0.26% weaker than its previous close on Friday.
“The markets continue to trade cautiously as they await the outcome of the U.S. elections this week and amid the ongoing and escalating effects of the increase in the number of COVID-19 infections,” analysts at Nedbank wrote in a note.
In the U.S. election, Democrat Joe Biden holds a commanding national lead over President Donald Trump ahead of Tuesday’s poll, but Trump has stayed competitive in the swing states that could decide the White House race. the novel coronavirus continues to ravage already-battered economies. Europe’s total COVID-19 cases crossed the grim milestone of 10 million on Sunday, prompting countries such as Britain and Portugal to enact fresh lockdowns. fixed income, the yield on the benchmark government bond due in 2030 ZAR2030= was down 4 basis points to 9.275% in early trade, reflecting firmer prices.