South African rand edges up ahead of business activity PMI as risk appetite improves
- The rand was trading at 16.35 against the dollar
JOHANNESBURG: [The South African rand](https://South African rand steady before producer inflation, budget balance data) edged up in early trade on Wednesday as a softer dollar and lower oil prices lent support to the risk-sensitive currency, while domestic investors awaited the release of a business conditions purchasing managers’ index.
By 0612 GMT, the rand was trading at 16.35 against the dollar, up about 0.2% from its previous close.
U.S. President Donald Trump said his administration had “very good discussions” with Iran on Tuesday, fuelling expectations of an imminent end to the five-month conflict.
The U.S. dollar kept subdued on fresh optimism over the Middle East, while oil prices extended declines after steep falls in the two prior trading sessions.
Most Asian emerging-market currencies also strengthened on Wednesday, as hopes of easing U.S.-Iran tension boosted risk appetite.
Prices of South Africa’s key mineral exports rose, with gold up nearly 2% and platinum gaining 1%.
Domestic investors will look to the July S&P Global PMI at 0715 GMT for fresh insight into business conditions across the private sector.
A local manufacturing PMI on Monday showed South African sentiment deteriorated further in July, dragged down by weak export demand and concern over renewed hostilities between the U.S. and Iran.
South Africa’s benchmark 2035 government bond was firmer in early deals, as the yield fell 7 basis points to 8.29%.
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