South African Rand Gains as Gold Rises, Oil Prices Ease
The South African Rand rallied against the US dollar, the euro, the British pound, and the Japanese yen on Wednesday as easing Middle East tensions drove gold prices higher.
The rand has strengthened against major crosses this morning, trading at R16.53 per dollar, R19.38 per euro, and R22.42 per pound, First National Bank (FNB) said in a brief.
ZAR gain was supported by improved risk sentiment following US President Donald Trump’s comments flagging “great progress” in talks with Iran, which boosted hopes for a peace deal and reduced geopolitical tensions.
The dollar’s broad weakness and tempered inflation outlooks lifted most emerging-market currencies, FNB said. Gold prices rose in Asian trading, supported by a weaker US dollar and falling oil prices, marking a second daily gain amid easing Middle East tensions.
US officials signalled continued ceasefire stability and a shift toward diplomacy with Iran. The supposed progress toward a US-Iran deal helped reduce inflation expectations. This morning, the bullion is changing hands at $4 648.
Brent crude is trading around $108.09 a barrel, down on easing supply concerns after the US paused its “Project Freedom”. Washington paused efforts to assist vessels in the Strait of Hormuz to allow room for a potential Iran deal, though the blockade remains. Despite de-escalation steps, tensions persist as negotiations remain stalled. Global Equity Markets Rally as Middle East Tensions Soften
