South African Rand Firmer Against Dollar as Gold Rallies
The South African rand continued to firm against the US dollar as macro data influenced market expectations ahead of the Federal Reserve’s interest rate decision.
The local unit position against FX majors was supported by continued weakness in the greenback following the US Treasury’s announcement that it expanded its long-term bond buyback programme, a move that has helped ease upward pressure on Treasury yields and weighed on the dollar.
In addition, Federal Reserve minutes showed that policymakers remain divided on the interest rate outlook, which also contributed to a softer US currency tone, First National Bank (FNB) said in a brief.
Analysts said local investors also priced in a lower-than-expected but still elevated inflation print for July. The rand traded at R16.10 per dollar, R18.80 per euro and R21.91 per British pound.
Amid uncertainties in global markets, Gold prices dropped slightly during early trading hours on Thursday as Asian investors took profits after a strong rally the previous session.
Gold price briefly crossed $4,500 per ounce Thursday, supported by a softer dollar, lower US Treasury yields, and continued heightened geopolitical uncertainty. Gold prices, however, moderated to $4,492 and then picked up again.
Trading above $92 per barrel, oil prices remain elevated this morning as concerns about Middle East supply disruptions and uncertainty surrounding the Strait of Hormuz continue to support the market. African Sukuk Crosses $7bn Outstanding in August, 2026 – Fitch
