South African rand firms as weaker dollar and softer oil ease pressure
- The rand traded at 16.3625 against the dollar , about 0.4% up from its previous close
JOHANNESBURG: The South African rand edged up in early Tuesday trade on a weaker dollar as oil prices dipped back below $100 a barrel and on signs of potential US-Iran dialogue, easing concerns about supply risks after the US military began blocking shipping traffic in and out of Iran’s ports.
At 0656 GMT the rand traded at 16.3625 against the dollar , about 0.4% up from its previous close.
Oil prices fell below $100 a barrel as signs of potential US-Iran dialogue to end their war eased concerns about supply risks after the US military began blocking shipping traffic in and out of Iran’s ports.
Reuters reported that negotiations between Washington and Tehran were still ongoing, while US Vice President JD Vance said in an interview that the US expected Iran to make progress in opening the Strait of Hormuz.
Gold, South Africa’s key export, rebounded on Tuesday from a near one-week low hit the day before.
The US dollar was flat against a basket of currencies and hovered near its lowest level in more than a month, making gold denominated in the greenback more affordable for holders of other currencies.
South Africa’s benchmark 2035 government bond also firmed in early deals, as the yield fell 1.2 basis points to 8.425%.