South African Rand in Sideways Moves Ahead of Economic Data
South African Rand (ZAR) is trading sideways against the dominant US dollar, European single currency and British sterling ahead of economic data scheduled for release on Friday.
The local unit strengthened in yesterday’s session as the South African Reserve Bank (SARB) raised rates by 25 basis points to anchor headline inflation, marking the first such move since 2023.
Middle East tensions had pushed April inflation figure to 4% as a result of a significant increase in crude oil prices and a decline in gold prices.
The country’s Central Bank also indicated the authority could still push rates higher if the US-Iran war, which has continued to drive oil prices higher, continues.
In its morning brief on Friday, First National Bank (FNB) said the rand is trading rangebound this morning, benefitting from a tentative 60-day ceasefire extension between the United States and Iran, pending President Trump’s approval, which has eased oil price pressures and supported emerging-market currencies broadly.
According to the bank, the rand is changing hands at 16.22 to the US dollar, 18.88 to the euro and 21.79 to the British pound.
The yellow metal is trading higher this morning, bolstered by optimism of a peace deal in the Middle East. This morning gold is trading at ~$4 509/ounce.
Oil prices are trading lower this morning amid easing tensions in the Middle East following reports that the US and Iran have reached a tentative agreement to extend their 60-day ceasefire pending President Trump’s sign-off.
The extension of the ceasefire agreement is set to lift restrictions on shipping through the Strait of Hormuz and start talks over Iran’s nuclear programme. This morning Brent oil is trading at ~$91.80/barrel.
On the economic calendar, South Africa’s M3 Money Supply and Private Sector Credit data were both due at 08:00 SAST, offering insight into domestic liquidity and lending trends.
Later in the day, the Balance of Trade figures for South Africa will be released at 14:00, drawing further market attention. #South African Rand in Sideways Moves Ahead of Economic Data Our Reforms Stabilising Nigeria’s Economy—- Tinubu
