Kenya’s currency is trading at its highest level in 10 weeks and stocks are rallying as investors bet the East African nation will avoid a repeat of the prolonged violence that followed 2007 elections in today’s vote.
The rand led gains for major currencies after South African producer inflation data beat economists’ estimates and the nation’s monthly trade deficit narrowed. Bond yields fell the most in three weeks.
The rand declined for a second day versus the dollar, paring its biggest weekly gain in six, after a report showed U.S. employment stagnated in August, fueling concern the world’s biggest economy is slowing. Bonds gained.
South Africa’s central bank will probably delay raising interest rates until the third quarter of next year as the global recovery weakens, curbing growth prospects in the country, Standard Bank Group Ltd. said.
The rand weakened for the first day in three as speculation European leaders will struggle to agree on debt-crisis measures curbed investor appetite for risk and South African January manufacturing figures missed estimates.