The South African (SA) Rand gained in early trade on Tuesday, boosted by higher gold prices, as investors awaited clarity on the status of United States (US) and Iran peace talks amid conflicting news.
The Rand traded at 16.2150 against the Dollar, about 0.6% stronger than its previous close.
Prices of gold and platinum, major SA exports, rose on Tuesday supported mainly by lower Treasury yields.
The US Dollar was little changed against a basket of currencies as investors remained on edge, treating news of any progress toward ending the Iran conflict with caution, given the fragility of a US and Iran ceasefire struck in early April.
Lebanon on Monday announced a partial ceasefire between Hezbollah and Israel, in what would amount to a limited de-escalation of a conflict that has killed thousands of people and inflamed the broader war with Iran.
“The rand is likely to remain highly sensitive to shifts in global risk appetite and developments in energy markets,” said Wichard Cilliers, head of market risk at TreasuryONE.
On the Johannesburg Stock Exchange, the Top-40 index was up 2.3%, thanks to mining stocks.
SA’s benchmark 2035 government bond also strengthened, as the yield fell 5 basis points to 8.505%.
–Reuters–
