The South African (SA) Rand firmed in early trade on Friday, as stronger gold prices, now back above $5 100, provide some support given the metal’s importance to SA’s export earnings.
The Rand traded at 16.5625 against the Dollar, about 0.5% up from its previous close.
Key SA exports gold and platinum rose on global markets.
ESG Analytics Economist Sifiso Skenjana said the rand’s recovery has been driven by stronger demand for gold, as well as the effective closure of the Strait of Hormuz, which has created port-related revenue opportunities for SA.
“Some ships may need to be rerouted via Cape Agulhas, which could lift SA’s port-related revenues, one of the factors the market appears to be pricing into the currency,” said Skenjana.
SA’s benchmark 2035 government bond was flat in early deals, as the yield rose 3 basis points to 8.27%.
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