JOHANNESBURG: South Africa’s rand rose in early trade on Wednesday, supported by higher commodity prices, but gains were limited by investor concerns over fast-paced developments around the Ukraine crisis and deeper power outages by local utility Eskom.
At 0630 GMT, the rand traded at 15.2575 against the dollar, 0.25% firmer than its previous close.
South Africa’s higher exposure to commodities including gold, platinum and palladium has helped limit losses in the currency, as the Russia-Ukraine conflict saps investors’ appetite for riskier assets.
Gold held ground after rising to a 19-month peak on Tuesday, while palladium and platinum gained.
Back home, Eskom said it aimed to nearly double the extent of power cuts after suffering more breakdowns at generation units. Frequent power outages have constrained South Africa’s economic growth in recent years.
In fixed income, the yield on the benchmark 2030 government bond was down 4.5 basis points to 10.215%, reflecting firmer prices.