Rand Drops Against Crosses on Global Risk Sentiment Shifts
The South African Rand (ZAR) continues to decline versus crosses including the US dollar (USD), Euro (EUR) and British pound (GBP) on Tuesday as sustained elevated U.S. Treasury yields and global oil prices weigh on sentiment.
The rand faces persistent downward pressure from a broader global risk-off environment, stockbroking and portfolio subsidiary First National Bank (FNB) said in a brief, characterised by rising US Treasury yields and a strengthening dollar that continues to drain capital from emerging-market assets.
Traders said locally, sentiment remains weighed down by an impending domestic fuel price hike, with petrol and diesel prices set to rise by more than R3 per litre.
The rand is trading at R16.64 against the US dollar, R21.99 against the British pound and R18.67 against the euro, according to details from the brief.
Oil prices started to moderate as the global supply risk outlook improved. Brent crude is trading at $100.62 per barrel as Middle East oil exports continued recovering toward pre-war levels, improving supply conditions.
Increased shipments from Iraq, Kuwait, and the Gulf, alongside Saudi Arabia’s price cuts to Asian buyers, signalled a loosening market, while investors awaited the US EIA’s latest energy outlook for further direction.
Gold remains under pressure on Tuesday, trading at $4 126 per ounce, with a stronger US dollar and rising Treasury yields weighing on bullion, outweighing support from softer labour data and reduced expectations of a Fed rate hike. #Rand Drops Against Crosses on Global Risk Sentiment Shifts# South African Rand Weakens, Demand Keeps US Dollar Firmer
