JOHANNESBURG: South Africa’s rand weakened slightly in early trade on Monday, as markets calmed after a week of volatile trading driven by tensions in the Middle East.
At 0756 GMT, the rand traded at 19.0925 against the U.S. dollar, about 0.1% weaker than its previous close. The dollar was flat.
The rand lost ground last week as reports of an Israeli strike on Iran caused fears of heightened conflict and pushed traders toward the safe-haven dollar.
“Markets have regained composure as Middle East tensions ease following Iran’s measured response to Friday’s Israeli retaliation,” said Andre Cilliers, currency strategist at TreasuryONE.
South African rand edges higher as dollar retreats
“Investors are eyeing upcoming economic data, including the personal consumption expenditure (PCE) price index and the US Q1 GDP report, for hints about the Federal Reserve’s potential rate cuts,” he added.
In South Africa, a leading business cycle indicator is due on Tuesday and March producer price inflation will be released on Thursday.
On the stock market, the Top-40 index was up 0.23% while the broader all-share was up 0.16% in early trade.
South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 2.5 basis points to 10.750%.
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