South African rand softens ahead of local elections, weigh AGOA decision
JOHANNESBURG, Nov 3 (Reuters) - The South African rand softened on Tuesday ahead of municipal elections, while investors assessed the implications of Washington's decision to suspend the country from a key US trade programme from 2027.
The rand traded at 16.6425 against the dollar at 1304 GMT, about 0.3% down from its previous close
Investors are watching the local municipal elections on Wednesday for signs of shifting voter sentiment over concerns about corruption, crime and public services
US Trade Representative Jamieson Greer notified Congress that South Africa and Rwanda would be suspended from the African Growth and Opportunity Act (AGOA) from January 1, 2027, citing concerns over human rights, corruption and threats to US interests
The economic impact is likely to be less severe than headlines suggest, ETM Analytics said in a note, adding that markets had largely priced in the move, limiting the rand's reaction
South Africa's trade ministry said late on Monday it would support sectors affected by the decision and continue pursuing trade, investment and broader economic opportunities with the US
Separately, the petroleum department said diesel prices would fall in November while petrol prices would be little changed after the government announced fuel-tax cuts in a mid-year budget review
On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was down about 0.7%, while the benchmark 2035 government bond was slightly firmer, as the yield fell 1.5 basis points to 8.52%