JOHANNESBURG: South Africa’s rand was little changed in early trade on Tuesday as the world’s biggest economy headed to the polls to elect its next leader and local investors awaited a purchasing managers’ index for October.

At 0602 GMT, the rand traded at 17.51 against the US dollar, near its previous close of 17.5025, after gaining against the greenback on Monday.

The dollar last traded about 0.04% softer against a basket of currencies.

“The dollar-rand appears to have stalled around the 17.5000 mark this morning as investors await a fresh catalyst to generate direction,” said ETM Analytics in a research note.

South African rand softens against the dollar

Americans will vote later in the day to elect their next president in a tight race between Republican candidate Donald Trump and Democrat Kamala Harris.

“How much further the rand might appreciate vs the dollar will likely depend on how the dollar responds to the US election outcome,” the note added.

The outcome of the vote may not be known for days.

Local investors will look to the S&P Global South Africa Purchasing Managers’ Index for October due at 0715 GMT for hints on the health of Africa’s most industrialised economy.

The US Federal Reserve is expected to further cut rates by 25 basis points on Thursday.

South Africa’s benchmark 2030 government bond was little changed in early deals.