South African Rand Gains as Gold Rebounds, Oil Falls

South African Rand Gains as Gold Rebounds, Oil Falls

The South African Rand posted fresh gains after a rebound against major currencies, including the US dollar (USD), the Euro (EUR), and the British pound (GBP). 

The currency climbed on a positive market outlook amid reports that the U.S. and Iran were returning to the table for peace talks. The ZAR climbed as the US dollar index weakened, while the European single currency was sold versus volatile sterling on Tuesday.

The rand is trading at R16.42 to the dollar, R19.25 to the euro, and R22.09 to the pound, First National Bank (FNB) said in a daily update report.

The local unit slipped on Monday as US President Donald Trump’s blockade of the Strait of Hormuz lifted crude prices and the dollar, while weighing on emerging-market assets.

South Africa’s major export revenue source, gold, edged higher this morning and is quoted at $4 775 per ounce, as renewed optimism for a negotiated end to the US-Iran war has eased concerns about inflation.

Oil prices are trading lower this morning after Iran signalled willingness to resume negotiations aimed at securing a longer-term ceasefire before the current two-week truce lapses.

President Donald Trump said Iranian officials had approached his administration seeking to work a deal, even as the US began a naval blockade of the Strait of Hormuz.

Meanwhile, OPEC+ lowered its second-quarter oil demand forecast due to the Middle East conflict. This morning, Brent crude oil is at $97.83 per barrel. Nairobi Stock Exchange Slides as Investors Take Profit