South African Rand Stables Against Crosses Ahead of PPI Data
The South African rand is trading stable against the US dollar, Euro and sterling on Thursday, ahead of the producer price index (PPI) data scheduled for release.
The rand was weaker against its major crosses on Wednesday and remained under pressure from a broadly stronger US dollar as markets priced in a higher-for-longer Federal Reserve rate path.
The local unit is trading rangebound on Thursday, benefitting from stable bullion, and is quoted at R16.55 to the US dollar, R18.81 to the euro and R21.80 to the pound, First National Bank (FNB) said in a note today.
Oil prices are moving toward the pre-war range as Russia and the US plan to hold a new round of consultations aimed at resolving longstanding disputes in their bilateral relationship, Russian Deputy Foreign Minister Sergey Ryabkov said Wednesday.
“I can confirm that such plans exist. There’s nothing to announce because there are no specific deadlines, but it’s understood they will continue,” Ryabkov told the Izvestia newspaper at the Primakov Readings foreign policy forum.
Oil prices extended losses in yesterday’s session, dropping below $76/barrel for the first time since early March, with more oil shipments clearing the Persian Gulf as US-Iran negotiations progressed, ultimately easing supply disruption fears.
Brent crude oil is trading at about $72.60/barrel on Thursday, while US WTI has fallen below $70 per barrel, according to data from the global commodity market.
Meanwhile, Gold is trading rangebound and is holding just below the psychologically significant $4 000 level this morning at $3 986/ounce.
Market data showed that gold had retreated sharply in the prior session as the dollar strengthened amid rising US rate-hike expectations and risk appetite improved on tentative signals of progress in US-Iran ceasefire negotiations, reducing safe-haven demand.
On the economic calendar, South Africa’s Producer Price Index data. Later in the day, attention turns to the US, with the 1Q26 final GDP growth reading, the Personal Consumption Expenditures (PCE) index, and jobless claims figures all scheduled for release at around 14:30. South African Rand Softens, Stronger Dollar Weighs on EM Currencies
