The South African currency climbed this week against the dollar, after the African National Congress, the winning party, is expected to maintain the current economic policies in the country.
In South Africa, for a party to have the right to change the constitution unilaterally, it must reach two-thirds of the votes, and even if the new president Jacob Zuma party did not have it, the ANC still claims that it will not surrender to the opposition parties pressure to spend more on welfare and change policies. The party has been governing South Africa since 1994, and significant changes on the countrys budget spending arent expected.
The rand is being favored by a combination of domestic and international factors, according to analysts statements. Within the countrys borders, the fact that the election occurred calmly in a democratically transparent way, helped an image of stability to be created around South African politics, while, in the international scenario, the situation remains very uncertain, making traders to be constantly searching for assets that are less affected by the global slump consequences.
The USD/ZAR fell from 8.902 to 8.7101 in the intraday comparison, following a two-week trend favoring the South African currency.
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