The South African (SA) Rand gained in early trade on Wednesday after the United States (US) extended a ceasefire with Iran, while domestically focused traders awaited the release of data on inflation and retail sales.
The Rand traded at 16.45 against the Dollar, up around 0.5% after trading in a narrow range during Tuesday’s session.
Investors await the monthly Consumer Price Index and retail sales figures to gauge the health of Africa’s most industrialised economy.
Economists polled by Reuters estimate inflation will rise to 3.1% in March from 3.0% in the previous month, while retail sales are expected to have increased 4.8% in February from 4.2% in January.
The Dollar was flat against a basket of currencies, while prices of gold, one of South Africa’s most valuable exports rose after US President Donald Trump said he would indefinitely extend the ceasefire with Iran to allow for further peace talks, hours before it was set to expire.
Some safe-haven buying in the gold market followed Trump’s announcement because it appeared to be unilateral.
It was not immediately clear whether Iran or the US ally Israel would agree to extend the ceasefire, which began two weeks ago.
SA’s benchmark 2035 government bond was slightly weaker in early deals, as the yield rose 1 basis point to 8.45%.
–Reuters–
