By Bhargav Acharya and Tannur Anders
The South African rand slumped against a buoyant dollar on Wednesday as “Trump trades” surged, after Donald Trump won the U.S. election.
Republican Trump recaptured the White House on Wednesday by securing more than the 270 Electoral College votes needed to win the presidency, Edison Research projected, four years after leaving office.
At 1157 GMT, the rand traded at 17.77 against the U.S. dollar , down about 2.2% on its previous close.
The dollar hit a four-month peak and was set for its biggest one-day rise since March 2020. It was last up about 1.8% against a basket of currencies.
“The initial feeling is that Trump will give (South African) President Ramaphosa a lot to think about, which might not be good for the rand,” said Danny Greeff, co-head of Africa at ETM Analytics.
Trump’s win has fuelled what’s known as “Trump trades” with
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