At the close of local trade, the rand quoted 0.39 percent stronger at R15.36/$, after trading in range of R15.31/$ – R15.45/$. The rand traded flat overnight. Expected range today R15.00/$ – R15.40/$.
As the rand continues to strengthen against the dollar, USA welcomes its 46th president Joe Biden. It is said that the Democratic party is expected to undo a number of polices implemented by Trump, including the most severe restriction on immigration.
Investec chief economist, Annabel Bishop, said in a note last week – “The Democratic party is expected to undo a number of polices implemented by Trump, including the most severe on immigration, returning to global agreements on the climate (and in particular re-joining the Paris Agreement) and improving US foreign policy,”
It is also reported that Biden’s biggest shift from Trump will likely be his approach to allies.
Though some analysts predict the rand to fluctuate in strength not reaching the flat rate of R14/$, it is been highlighted by many that South Africa will strongly emerge from the COVID pandemic in 2021 under Cyril Ramaphosa’s presidency.