Shell loses five-year legal fight with South African activists
The oil major won’t be allowed to renew an exploration right off South Africa’s rugged Indian Ocean Wild Coast, the Constitutional Court ruled.
Johannesburg: South Africa’s currency, the rand, maintained steady levels on Friday amid easing US inflation suggesting the Federal Reserve may keep rates unchanged, while geopolitical tensions in the Middle East supported the US dollar. At 0818 GMT, the rand stood at 16.18 per dollar, unchanged from the previous close of 16.1924.
Market sentiment remained cautious following the US's potential indefinite naval blockade of Iran and heightened economic pressure on Tehran, highlighting the risk of an extended Middle East conflict. Typically, the South African currency benefits when risk appetite is high, but concerns about potential disruptions to oil supplies and global growth due to the US-Iran standoff may deter investors.
The dollar exhibited limited movement after weaker-than-anticipated US producer prices data dampened expectations of a September Federal Reserve rate increase. Andre Cilliers, currency strategist at TreasuryONE, noted that the rand is currently consolidating within a R16.05 to R16.25 range with significant trading activity. From a technical standpoint, the local currency appears slightly overbought, with a potential short-term correction possible.
On the Johannesburg Stock Exchange, the Top-40 index experienced a 0.6% decline in early trading. South Africa’s benchmark 2035 government bond saw a slight decline in value early on, with the yield increasing by 2 basis points to 8.435%.
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