South African Rand Gains Versus USD as Precious Metals Rally
The South African rand edged up against the US dollar (USD) on Thursday, hovering around 17.3 per USD, supported by higher prices for precious metals, particularly gold, and a broadly subdued dollar.
Prices are uptrend boosting the country’s fiscal outlook and private investment in the segment. South Africa is top of the list of the world’s top platinum producers, with production of 120,000 kilograms in 2024.
The country is also a major producer of palladium, taking second place globally with 72,000 kilograms last year. The country holds the largest-known reserves of PGMs globally at 63 million kilograms, accounting for over 75 percent of known global reserves
While ZAR strengthen versus dollar, the central banks’ moves and developments on US tariffs remained in focus.
Investors weighed the prospects of a measured US policy easing, after several Fed officials, including Chair Jerome Powell, signalled a cautious stance on future rate cuts.
Domestically, the South African Reserve Bank (SARB) left its repo rate unchanged at 7%, as anticipated, flagging risks to inflation in the coming months, despite sluggish growth.
On the trade front, South Africa’s minister of trade and industry, Parks Tau, confirmed that negotiations with the US over 30% tariffs on local exports have entered a critical new phase.
He said that the US will provide a revised text early next week based on recent discussions, which will help move negotiations forward. #South African Rand Gains Versus USD as Precious Metals Rally#
Daily FX Rate – GTBank Sells Dollar at N1,495 for Foreign Payment
