South African rand holds firm despite stronger dollar and weak metals
JOHANNESBURG: The South African rand was steady early on Tuesday, shrugging off a stronger US dollar even as weaker gold and platinum prices weighed on South Africa’s export earnings and terms of trade. At 0651 GMT the rand traded at 16.6325 against the dollar , little changed from its previous close of 16.6497. The US dollar index , which measures the greenback against a basket of currencies…
Johannesburg - The South African rand remained stable on Tuesday, defying a stronger US dollar and weaker gold and platinum prices that typically impact the country's export revenues and economic performance. At 0651 GMT, the currency was trading at 16.6325 against the dollar, only marginally different from its prior close of 16.6497.
The US dollar index had risen, influenced by decreasing hopes of an interest rate increase by the Federal Reserve this month. Gold and platinum, the country's major exports, also declined due to the stronger dollar. ETM Analytics stated that the rand's resilience was surprising, even though weak gold and platinum prices, along with high oil prices, were affecting the economy.
The analysts cautioned that although the full impact of these factors might not be evident, it should not be interpreted as a positive sign for South Africa.
Early trading saw the benchmark 2035 government bond strengthen, with its yield decreasing by 3.5 basis points to 8.85%.
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