South African rand gains as dollar wavers amid Middle East tensions

Business Recorder

South African rand gains as dollar wavers amid Middle East tensions

JOHANNESBURG: The South African rand gained in early Thursday trade as the US dollar wavered, while renewed strikes by Iran and the United States and ‌higher oil prices kept broader risk appetite subdued ahead of key domestic data. At 0645 GMT, the rand traded at 16.5375 against the U.S. dollar , up 0.2% from its previous close. The U.S. and Iran traded air attacks ⁠for a second successive day, with President Donald Trump vowing further strikes if Tehran does not immediately agree to a peace deal. The greenback eased slightly against a basket of currencies, and oil prices jumped after Tehran declared the Strait of Hormuz closed following the U.S. strikes on Iran. “Not even the overnight geopolitical developments were enough to erode sentiment towards ‌the ⁠rand, leaving it trading within its recent three-day range,” ETM Analytics said in a research note. Like other risk-sensitive currencies, the rand has been driven largely by global market sentiment, particularly since ⁠the start of the U.S.-Israeli war on Iran. The South African Reserve Bank will publish first-quarter current account data at 0900 GMT. Statistics ⁠South Africa will then release April mining output at 0930 GMT and manufacturing production data at 1100 GMT. South ⁠Africa’s benchmark 2035 government bond was slightly weaker in early deals, as the yield rose 1 basis point to 8.645%.

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