Republican Donald Trump wins U.S. election
Trump trades boost dollar, rand tumbles
Market volatility likely, analysts say

JOHANNESBURG, Nov 6 Reuters The South African rand slumped against a buoyant dollar on Wednesday as Trump trades surged, after Donald Trump won the U.S. election.

Republican Trump recaptured the White House on Wednesday by securing more than the 270 Electoral College votes needed to win the presidency, Edison Research projected, four years after leaving office.

At 1157 GMT, the rand traded at 17.77 against the U.S. dollar , down about 2.2 on its previous close.

The dollar hit a fourmonth peak and was set for its biggest oneday rise since March 2020. It was last up about 1.8 against a basket of currencies.

The initial feeling is that Trump will give South African President Ramaphosa a lot to think about, which might not be good for the rand, said Danny Greeff, cohead of Africa at ETM Analytics.

Trump39;s win has fuelled what39;s known as Trump trades with markets anticipating a continuation of his policies, which could mean higher growth in the short term but also potentially inflationary pressures.

Complicating the rand39;s situation was South Africa39;s midterm budget statement last week, said Zain Vawda, market analyst at MarketPulse by OANDA.

The government forecast wider budget deficits and higher debt over the next three years and ratings agency Fitch on Monday said it had doubts over the government39;s ability to meet some of its…