South African rand steady as investors weigh AGOA decision, await key election results
JOHANNESBURG, Nov 3 (Reuters) - The South African rand was little changed in early trade on Tuesday as investors weighed Washington's plan to suspend the country from a key trade programme and braced for US midterm and local elections.
At 0630 GMT the rand traded at 16.62 against the dollar , little changed from its previous close
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
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
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
US midterm elections on Tuesday could shift the balance of power in Congress, while South Africa's local government elections are due on Wednesday
Umkhulu Treasury's Adam Phillips said he expected traders to cut positions early on Tuesday. "The election results will be vastly different, but both will affect South Africa," Phillips said
South Africa's benchmark 2035 government bond was weaker in early deals, as the yield rose 1.5 basis points to 8.51%