South African Rand Dips Amid ANC's Potential Loss

The South African rand fell over 1% against the dollar as initial poll results indicated the African National Congress may lose its majority. This could lead to weeks of coalition negotiations, causing market uncertainty. The rand traded at 18.6525 per dollar, and the benchmark 2030 bond yield rose by 17 basis points to 10.695%.

The South African rand fell on Thursday as early poll results showed the governing African National Congress was on course to lose its majority, a scenario that could lead to weeks of uncertainty as it tries to negotiate a coalition with one or more smaller parties. At 0716 GMT, the rand traded at 18.6525 against the dollar , over 1% weaker than its previous close. The dollar last traded around 0.1% weaker against a basket of global currencies.

Vote counting was underway on Thursday after South Africans took to the polls on Wednesday in the most contested election since the end of apartheid. The governing African National Congress is projected to get roughly 42% of the national vote, the country's Council for Scientific and Industrial Research told the public broadcaster on Thursday.

Around 11.37% of the votes had been tallied at 0716 GMT, and markets are likely to get a clearer picture of the outcome as counting continues. South Africa's benchmark 2030 government bond was weaker in early deals, with the yield up 17 basis points to 10.695%.