Reported 12 months ago
The South African rand experienced a significant increase against the dollar, reaching its highest gain of the year, fueled by optimism surrounding the formation of a broad coalition government. This positive news also uplifted other emerging-market currencies, with the Mexican peso strengthening, and led to a general risk-on sentiment in the market. The rand's rally was driven by expectations of a coalition administration being established by the African National Congress and the centrist Democratic Alliance, sparking positive forecasts for South African assets. Additionally, developments in the US, such as the slowdown in the core personal consumption expenditures price index and the anticipation of rate cuts by the Federal Reserve, further influenced the performance of emerging-market equities and currencies.
Source: YAHOO