The South African (SA) Rand was steady in early trade on Friday, supported by softer oil prices and firmer commodity prices, as local investors turned their attention to upcoming inflation data and the Central bank’s interest rate decision.
The Rand traded at 16.7550 against the Dollar , little changed from its previous close of 16.7676.
Oil prices inched down on Friday and were headed for a second weekly decline as a continued United States blockade of Iran eased fears of renewed fighting in the Middle East, though shipping attacks remained a supply risk
As a net importer of fuel, SA is highly exposed to global oil price movements
SA’s key exports, gold and platinum , climbed more than 1% on Friday, with platinum on track for modest weekly gains.
Next week, SA will release October inflation data, and the SA Reserve Bank will announce its interest rate decision.
At its September meeting, the central bank increased interest rates by 25 basis points, citing persistent price pressures stemming from the war in Iran and the need for tighter policy to keep inflation expectations anchored.
SA’s benchmark 2035 government bond was weaker in early deals, as the yield rose 6.5 basis points to 8.56%
–Reuters–
