South African Rand Rises Sharply Against US Dollar, Euro, Sterling
South African rand (ZAR) trades strongly against the US dollar and other Western currencies as yellow metals gain traction in the global commodity market. US dollar has been shifted to one side as a safe-haven asset amidst easing geopolitical tensions in the Middle East
The local unit is trading at R15.98 per US dollar on Friday, First National Bank (FNB) said in a brief, reflecting continued resilience as the rand trades below the R16.00 mark.
Market analysts said the ZAR is approaching its strongest levels in months, with support from robust precious metals prices amid a softer US dollar.
The greenback declined to a four-month low as expectations for a September Fed rate hike eased following dovish comments from Fed Governor Christopher Waller.
Against other crosses, the rand is trading at R21.63 per pound and R18.58 per euro, analysts at First National Bank said in the brief published on Friday.
Gold is hovering at $ 4,470.73 after two days of gains, supported by easing US Treasury yields and a softer dollar. Markets have reduced expectations for a September rate hike, while investors await payrolls and inflation data for further policy signals.
Analysts said ongoing tensions in the Middle East and rising oil prices continue to underpin inflation concerns and bullion’s safe-haven appeal.
Crude oil prices have climbed to $95.79 per barrel, driven by intensifying US-Iran military exchanges that have severely restricted shipping traffic through the Strait of Hormuz.
Lower shipping volumes, refinery damage, limited spare capacity, and tight diesel inventories have heightened supply risks, supporting expectations of elevated global fuel prices into next year.
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