Date Posted

Rand holds firm despite stronger Dollar, weak metals

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Rand was steady early on Tuesday
The South African (SA) Rand was steady early on Tuesday, shrugging off a ​stronger United States (US) Dollar even as weaker gold ‌and platinum prices weighed on S’s export earnings and terms of trade.
The rand ​traded at 16.6325 against the Dollar, ​little changed from its previous close of ⁠16.6497.
The Dollar index , which measures the ​greenback against a basket of currencies edged up, ​driven by easing expectations of a Federal Reserve interest rate hike this month.
Gold and platinum, SA’s ​key exports, eased on Tuesday also pressured by ​the firmer Dollar
Analytics said the Rand has remained resilient ‌despite ⁠a firmer US Dollar, even as weak gold and platinum prices and elevated oil prices weighed
“As an economy, SA remains vulnerable to ​more shocks. ​Still, the ⁠full effects can sometimes be masked by lower foreign participation. That ​should not be confused with a ​rising ⁠belief that SA is doing something right,” said ETM Analytics in a note.
SA’s benchmark 2035 ⁠government ​bond was firmer in ​early deals, as the yield fell 3.5 basis points to ​8.85%
–Reuters–