South African rand steady with Iran war, US inflation data in focus

Business Recorder

South African rand steady with Iran war, US inflation data in focus

JOHANNESBURG: The South African rand held steady in early trade on Wednesday as markets stayed on edge over the latest US-Iran clashes and awaited crucial ‌U.S. inflation data for clues on the Federal Reserve’s rate path. At 0643 GMT, the rand traded at 16.51 against the U.S. dollar , little changed from its previous close. The dollar held steady against its peers, while the oil prices ⁠climbed after the U.S. military launched new strikes against Iran and as market data showed another large draw in U.S. crude stocks. The U.S. military struck Iranian targets after President Donald Trump vowed on Tuesday to respond to the downing of an Apache attack helicopter, a fresh escalation that threatens to unravel a fragile ceasefire between Washington and Tehran. Iran’s ‌Revolutionary ⁠Guards said they retaliated with attacks against a U.S. base in Jordan and 21 other targets in the Gulf on Wednesday. “The local currency will continue to be driven by headlines and the ⁠U.S. inflation data this afternoon,” Andre Cilliers, currency strategist at TreasuryONE, said. A closely watched U.S. inflation reading later in the day will ⁠be the next major test for markets. Like other risk-sensitive currencies, the rand often takes cues from global ⁠drivers. South Africa’s benchmark 2035 government bond was slightly weaker in early deals, as the yield rose 2.5 basis points to 8.65%.

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