Rand holds near multi-month high as Iran sanctions loom
At 06:36 GMT, the rand traded at 15.99 against the dollar, up about 0.2%
South Africa's currency, the rand, opened the week on a strong note, nearing its highest level since the start of the Iran war. The US dollar, trading near multi-month lows, supported the move. Key factors driving the rand's rise included a subdued dollar, higher gold prices, and strength among emerging-market currencies. The commodity-linked currency traded at 15.99 against the dollar at 06:36 GMT, up 0.2% from the previous session.
South Africa's main export, gold, reached its highest level in over three months, buoyed by the weaker dollar. Investors were watching for US inflation data and a speech by Federal Reserve Chair Kevin Warsh later in the week. The US Treasury Secretary was set to address the aggressive sanctions package against Iran, while Iran's foreign minister labeled the threat as desperation.
Market risk expert Wichard Cilliers attributed the rand's rally to a broad dollar weakness, strong emerging-market sentiment, and higher gold prices. South Africa's 2035 government bond saw a slight increase in yield, falling to 8.565%.
Written by urgent.news from SABC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
