South African Rand Little Change as Oil Prices SteadyThe
South African Rand was little changed against the US dollar (USD), which printed at an 18-month high amid increased demand for safe-haven assets.
The local unit traded at R16.53 per US dollar, with higher-for-longer US rate expectations continuing to limit gains, First National Bank (FNB) said in a brief on Tuesday.
Investors now shift focus to the US consumer price index (CPI) report while balancing broad US dollar strength amid higher oil prices.
Elevated global energy costs continue to intensify South Africa’s petroleum import costs. Against other major crosses, the rand traded at R18.46 per euro and R21.84 per British pound.
Brent crude was stable at $105.45 per barrel, as Russia’s partial easing of diesel export restrictions helped lower supply concerns.
However, prices remained supported by escalating geopolitical tensions involving Russia and Ukraine, as well as Iran-backed Houthis and Saudi Arabia, coupled with growing scrutiny of US-Russia energy-related agreements.
Gold held at $4 195/oz as a stronger US dollar and expectations of further Federal Reserve tightening weighed on sentiment ahead of key US inflation data.
Ongoing geopolitical tensions and elevated oil prices continued to fuel inflation concerns, reinforcing expectations that interest rates could remain higher for longer. Lagos Set to Open N200 Billion State Bond for Subscriptions
