South Africa’s (SA) Rand was little changed on Friday as easing United States (US) inflation boosted speculation the Federal Reserve would keep rates on hold, while Middle East tensions supported the Dollar.
The Rand traded at 16.18 against the Dollar, little changed from its previous close of 16.1924.
Risk sentiment remained fragile after the US signalled it could maintain its naval blockade of Iran indefinitely and step up economic pressure on Tehran, highlighting the risk of a prolonged Middle East conflict.
The SA currency typically gains when risk appetite is strong, but fears that the US and Iran standoff could disrupt oil supplies and hurt global growth may keep investors cautious.
The Dollar remained range-bound after softer-than-expected US producer prices data reduced expectations for a September Federal rate hike.
On the Johannesburg Stock Exchange, the Top 40 index was down 0.6% in early trade.
SA’s benchmark 2035 government bond was slightly weaker in early deals, with the yield up 2 basis points to 8.435%.
–Reuters–
