The rand was weak against global currencies on Wednesday as the country waits for inflation data to be released later in the day.
The rand was trading at around R18.42 against the dollar at 8.20am.
The ZAR was trading at around R18.26 against the dollar at the close of business on Tuesday.
Other currencies
The rand was trading at around R23.72 to the pound and R19.97 to the euro at 8.20am.
June inflation data is out on Tuesday and is expected to also impact the rand, and investors will try to stay from riskier currencies like the rand.
The data will also provide insights on the South African Reserve Bank’s (Sarb) path of deciding what the interest rate will be, come September.
Biden steps down and makes way for Kamala Harris
Investors are still reacting to President Joe Biden dropping out of the US elections.
Rand Merchant Bank analysts in a research note that investors are still evaluating the situation in the US and Biden’s decision to not seek re-election in November.
The president has endorsed Vice President Kamala Harris as the Democratic presidential nominee.
Yesterday, Harris said that she had received delegate support to become the Democratic nominee.
How did the US markets react to Harris?
US stocks were not impacted by the news that Biden dropped his re-election bid and by the fact that Harris would be the next Democratic nominee for president, according to USA Today.
Will the rand be impacted? This is the major question.
South African investors will be paying close attention to the ramifications of Biden stepping down, and this plays a role in how they invest in riskier assets.
Last week, analysts said that the assassination attempt on Donald Trump impacted investors' appetite for riskier assets like the rand.
The ZAR is generally in line with Asian emerging market currencies, and at times, the rand can take its cue from other major global currencies.
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management said that the focus will now shift to the confirmation of a new Democratic nominee, whether there will be any material differences in their policy priorities that could affect markets, and whether the new nominee will be more likely to defeat Trump in November.
IOL BUSINESS