South African Rand Halts 2-Day Losses Against USD, EUR, GBP
The South African Rand strengthened moderately against major currencies, rebounding from a two-day losing streak, First National Bank (FNB) said in its morning brief on Thursday.
FX traders reported that the currency is currently trading at R16.41 against the US dollar (USD), R19.21 against the European single currency (EUR), and R22.19 against the British pound (GBP)).
The rand’s recovery was driven by cautious risk appetite ahead of the US President Donald Trump and China’s President Xi Jinping summit on Thursday.
The forex market reacted positively to a South African government statement that it would shield the economy from a potential surge in consumer prices.
Speaking at a BlackRock infrastructure investment event in Cape Town, President Ramaphosa reinforced the government’s commitment to a stable macroeconomic framework and alignment with the South African Reserve Bank on containing inflation amid heightened pressures from the Middle East.
Gold continues to hover around the $4 700 per ounce mark, as rising United States (US) inflation has strengthened expectations that the Federal Reserve will keep rates higher for longer, or even hike fund rates.
Recent data showed accelerating wholesale and consumer inflation, reducing hopes for rate cuts. Higher rates weigh on gold, while investors monitor US-China relations and developments in the Iran conflict.
Brent crude is trading around $105.99 per barrel, pausing gains as markets shifted focus to a potential trade-focused meeting between US and Chinese leaders.
Despite this, tensions with Iran remain elevated, with fresh US sanctions. Supply concerns persist, as Hormuz flows declined and global markets are expected to stay undersupplied, worsened by Saudi Arabia’s lowest output since 1990. Overnight Rate Steadies, Money Market Liquidity Reduces
