South African Rand Climbs Ahead of GDP Data, Bond Auction
The South African Rand climbed ahead of the country’s gross domestic product (GDP) data scheduled for release on Tuesday, as the debt office planned to auction local bonds.
The local unit appreciated well in yesterday’s session and is stable this morning, First National Bank (FNB) said in a brief on Tuesday.
ZAR rallied following reports that tensions in the Middle East eased amid a halt in hostilities between Israel and Iran. The rand is trading at R16.46 to the US dollar, R19.01 to the euro, and R21.99 to the British pound, FNB said in the brief.
The global commodity market reacted positively to ongoing negotiations between the US and Iran over nuclear enrichment, as President Donald Trump signalled that the two are close to an agreement that could restore peace to the Middle East.
Oil prices fell sharply and are trading range-bound during early hours on Tuesday. Sentiment was impacted by de-escalating tensions in the Middle East amid renewed optimism that peace negotiations could move forward.
Oil outlook remains mixed as China’s May crude imports fell to 7.8 million barrels per day, its 8-year low, as the Middle East conflict crimped supply routes and Beijing held off seeking replacement barrels, pointing to weaker near-term demand from the world’s largest importer.
Brent crude oil is trading at $93.45/barrel, while WTI is trading below $90 per barrel. Also, the bullion is trading rangebound as investors weigh the Israel-Iran ceasefire while remaining optimistic about the reopening of the Strait of Hormuz.
Gold is trading at $ 4,331 per ounce, though concerns over inflation and interest rate hikes remain in focus. On the economic calendar, South Africa’s GDP growth rate is followed by the 2037, 2039, and 2042 bond auctions. AI Stocks Drive Wall Street Rally, European Equities Climb
