South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS
JOHANNESBURG, Dec 29 (Reuters) – The South African rand softened in early trade on Monday as investors booked profits from a precious metals rally.
At 0740 GMT the rand traded at 16.7025 against the dollar , down about 0.3% from its previous close. The dollar was relatively flat against a basket of major currencies.
Precious metals pulled back on Monday, with silver retreating after breaching $80 per ounce earlier in the day and gold easing from close to record highs as investors booked profits and safe-haven demand cooled.
“Despite the short-term pullback, the broader outlook for both metals remains positive in a lower-rate global environment,” said Wichard Cilliers, head of market risk at TreasuryONE.
South Africa’s risk-sensitive currency is on course for gains of more than 12% against the dollar this year, bolstered by the nation’s improved fiscal performance and success containing inflation, as well as soaring prices of precious metals such as gold and platinum, which are major exports.
On the Johannesburg Stock Exchange, the Top-40 index was last up 0.2% in early trade, with Aspen Pharmacare’s shares rising more than 20% after the pharmaceuticals company announced plans to sell its major Asia Pacific assets, excluding China, for $1.6 billion.
South Africa’s benchmark 2035 government bond was slightly stronger in early deals as the yield fell by 1 basis point to 8.33%.
Reporting by Sfundo Parakozov Editing by David Goodman Editing by
