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South African rand sinks
2 hrs ago |
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The South African rand fell on Monday as the ongoing conflict in the Middle East rattled investors and added to global economic uncertainty.
At 1349 GMT the rand traded at 16.15 against the dollar , roughly down 1.3% from Friday's close.
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Over the weekend, the United States and Israel carried out major strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei. Iran has retaliated with missile and drone attacks across parts of the Middle East.
The dollar gained 0.3% against a basket of currencies, with gold - a major South African export - hitting its highest in more than four weeks.
"Although the U.S. is involved, and the Trump administration's stance on tariffs continues to undermine the USD's value, it remains a haven for investors seeking to shield themselves from the volatility that might follow this weekend's events," said ETM Analytics in a research note.
"Supporting the rand in this instance is the gold price, which has surged back towards its recent record highs," the note added.
Like other risk-sensitive currencies the rand often takes cues from global drivers such as U.S. policies in addition to domestic economic data.
A gauge of South African manufacturing sentiment weakened slightly in February, with the headline index falling further below the neutral 50-point mark, a purchasing managers' index survey showed on Monday.
Separately, figures from South Africa's auto association NAAMSA showed that new vehicle sales increased by 11.4% year-on-year in February, higher than the 5.2% predicted by Nedbank economists and the 7.5% recorded in January.
On the Johannesburg Stock Exchange, the Top-40 index opens new tab was last down 0.8%.
South Africa's benchmark 2035 government bond weakened sharply, as the yield rose 14.5 basis points to 8.115%.
At 1349 GMT the rand traded at 16.15 against the dollar , roughly down 1.3% from Friday's close.
The Reuters Inside Track newsletter is your essential guide to the biggest events in global sport. Sign up here.
Over the weekend, the United States and Israel carried out major strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei. Iran has retaliated with missile and drone attacks across parts of the Middle East.
The dollar gained 0.3% against a basket of currencies, with gold - a major South African export - hitting its highest in more than four weeks.
"Although the U.S. is involved, and the Trump administration's stance on tariffs continues to undermine the USD's value, it remains a haven for investors seeking to shield themselves from the volatility that might follow this weekend's events," said ETM Analytics in a research note.
"Supporting the rand in this instance is the gold price, which has surged back towards its recent record highs," the note added.
Like other risk-sensitive currencies the rand often takes cues from global drivers such as U.S. policies in addition to domestic economic data.
A gauge of South African manufacturing sentiment weakened slightly in February, with the headline index falling further below the neutral 50-point mark, a purchasing managers' index survey showed on Monday.
Separately, figures from South Africa's auto association NAAMSA showed that new vehicle sales increased by 11.4% year-on-year in February, higher than the 5.2% predicted by Nedbank economists and the 7.5% recorded in January.
On the Johannesburg Stock Exchange, the Top-40 index opens new tab was last down 0.8%.
South Africa's benchmark 2035 government bond weakened sharply, as the yield rose 14.5 basis points to 8.115%.
Source - Reuters
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