Rand Breaches Key Level With More Gains in Store as Assets Rally
- South African currency rides risk-on wave after U.S. midterms
- Banking stocks advance the most in more than two months
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The rand gained to its strongest level against the dollar since August, benchmark bond yields fell to the lowest in more than a month, and bank shares rallied as South African assets rode the risk-on wave following the Democratic Party’s House win in U.S. midterm elections.
Lower oil prices are also supportive of South African bonds and the currency, with inflation expectations as measured by break-even rates falling to the lowest level in more than two months on Wednesday.