South African rand set to snap four-week losing streak
- The currency fell 2% last week, its sharpest weekly decline during the recent run of losses
JOHANNESBURG: The South African rand was on track to end the week stronger on Friday, snapping a four-week losing streak, supported by firmer gold prices and a subdued dollar, while lower oil prices also offered relief to the net energy importer.
At 0830 GMT the rand traded at 16.5275 against the dollar , roughly up 0.4% from its previous close and up about 0.7% on the week.
The currency fell 2% last week, its sharpest weekly decline during the recent run of losses.
Prices of gold, a major South African export, rose more than 1% on Friday, while the US dollar traded flat against a basket of currencies as market players weighed lingering inflation concerns and the outlook for Federal Reserve interest rates.
Oil prices fell as Middle East supply concerns eased after US President Donald Trump said the country would not attack Iran before elections next month.
“For the rand, the near-term direction will depend heavily on whether the improvement in global risk sentiment holds or renewed oil and yield pressure drives investors back towards the dollar,” said Andre Cilliers at TreasuryONE.
On the Johannesburg Stock Exchange, the Top-40 index was up 1.4% in early trade.
South Africa’s benchmark 2035 government bond also strengthened, with the yield falling 7 basis points to 8.795%.