JOHANNESBURG: The South African rand dropped sharply against a surging dollar in early trade on Wednesday, as markets tilted towards a win for Donald Trump in the US election.

At 0714 GMT, the rand traded at 17.7950 against the dollar , down about 2.4% on its previous close.

The dollar was set for its biggest one-day rise since March 2020 and was last up 1.6% against a basket of currencies.

South African rand stable as markets gear up for US vote

“If Trump solidifies his lead, the USD could gain further, likely pushing USD-ZAR higher,” said Andre Cilliers, currency strategist at TreasuryONE.

South Africa’s benchmark 2030 government bond also slumped in early deals, with the yield up 11.5 basis points to 9.43%.