South African rand gains as precious metals prices jump
- The rand was up about 0.4% from Fridays close at 16.71 to the dollar
JOHANNESBURG: The South African rand gained against the US dollar on Monday as prices of precious metals, a key export, rose on global markets.
The rand was up about 0.4% from Fridays close at 16.71 to the dollar by 0744 GMT.
Johannesburg-listed stocks also firmed, with the main bourse’s Top-40 Index last up 1.3%.
Gold hit a record high on Monday, riding on growing expectations of further US interest rate cuts and strong safe-haven demand. Platinum, meanwhile, touched its highest in more than 17 years.
“We could see a test of the 16.70 (rand to the dollar) level again on the back of a surge in precious metals prices and strong exporter inflows,” Wichard Cilliers, head of market risk at TreasuryONE, said in a research note.
The rand has had a strong year, rising more than 12% against the dollar thanks to South Africa’s improved fiscal performance, success containing inflation and soaring precious metals prices.
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