JOHANNESBURG, June 22 (Reuters) – The South African rand held steady in early trade on Monday as markets digested a turbulent weekend of U.S.-Iran talks, with signs of progress supporting broader risk sentiment.
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At 0713 GMT, the rand traded at 16.4250 against the dollar, little changed from its previous close.
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A joint statement from mediating nations Qatar and Pakistan said U.S. and Iran agreed to a roadmap toward a final deal within 60 days, providing hope for a resolution to a conflict that has weighed on global inflation and rates outlooks.
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The greenback was steady against a basket of currencies as the talks fuelled investor optimism for a deal, while oil prices fell after Tehran said it had secured waivers for oil and petrochemical exports.
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“For now, USD/ZAR remains caught between improving risk sentiment and persistent dollar strength, with traders watching developments in oil, gold and U.S. inflation expectations for direction,” said Andre Cilliers, currency strategist at TreasuryONE.
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Like other risk-sensitive currencies, the rand has been at the mercy of global market sentiment, particularly since the start of U.S.-Israeli attacks on Iran on February 28.
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Domestically, investors will look to the composite leading business cycle indicator (ZALEAD=ECI), on Tuesday and producer inflation (ZAPPIY=ECI), data on Thursday for clues on the health of Africa’s most industrialised nation.
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On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), was up about 0.7% in early trade.
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South Africa’s benchmark 2035 government bond was slightly firmer in early deals, as the yield fell 1 basis point to 8.305%.
Reporting by Nilutpal Timsina; Editing by Joe Bavier.
