South African rand slips on stronger dollar, local election vote count advances

JOHANNESBURG, Nov 6 (Reuters) – The South African rand weakened against a firmer dollar on Friday as ​the vote count in this week’s ‌municipal elections progressed, with results so far pointing to a further slide in support for the African ​National Congress.

• At 0655 GMT, the rand ​traded at 16.5275 against the U.S. currency , ⁠down 0.3% on its previous close
• With 72% ​of votes counted, the ANC had secured ​about 32% of the vote, down from 46% at the last municipal elections in 2021
• Its nearest rival ​the pro-business Democratic Alliance was on about ​24% of the vote, electoral commission data showed
• Bureau for ‌Economic ⁠Research chief economist Lisette IJssel de Schepper said the key economic issue was whether the elections lead to more stable administrations ​in key ​cities, better ⁠service delivery and a stronger environment for business
• The U.S. dollar gained ​over 0.3% against a basket of ​currencies, drawing ⁠support from safe-haven demand after a selloff in AI stocks worldwide
• South Africa’s benchmark 2035 ⁠government ​bond was marginally weaker in ​early deals, as the yield rose 4.5 basis points ​to 8.33%

Reporting by Sfundo Parakozov; Editing by Alexander Winning