The South African (SA) Rand softened in early trade on Tuesday as investors took profits after the currency benefited in the previous session from a surge in gold prices.
The Rand traded at 16.4250 against the Dollar , about 0.2% weaker than its previous close.
It gained around 0.5% on Monday, boosted by gold which climbed more than 2% to an all-time high as investors sought the safe haven asset after President Donald Trump’s administration opened a criminal investigation into Federal Reserve Chairperson Jerome Powell.
Bullion also edged lower on Tuesday as some traders booked short-term profit.
Like other risk-sensitive currencies, the rand is expected to take cues from global drivers like the unrest in Iran in addition to concerns over the Fed’s independence.
On the domestic front, traders are also tracking developments around a potential extension of the United States (US) trade preference programme, the African Growth and Opportunity Act.
The US House of Representatives approved a three year extension, but uncertainty remains over whether SA will be excluded, given strained diplomatic relations between Washington and Pretoria.
The bill will next go to the US Senate.
On the Johannesburg Stock Exchange, the Top-40 index was last up 0.2%.
SA’s benchmark 2035 government bond was flat in early deals, with the yield at 8.305%.
–Reuters–
