South African rand holds near multi-month high as Iran sanctions loom

JOHANNESBURG, Aug 24(Reuters) – The South African rand opened the week on a firm footing on Monday, hovering near its strongest ​level since the start of the Iran war, as a ‌subdued dollar, higher gold prices and strength across emerging-market currencies supported the commodity-linked currency.

• At 0636 GMT, the rand traded at 15.99 against ​the dollar , up about 0.2% and not far from ​its strongest level since the start of the Iran ⁠war touched earlier in the session.
• South Africa’s key export, ​gold, hit its highest level in more than three months as ​a subdued dollar lent support, while investors looked ahead to key U.S. inflation data and a speech by Federal Reserve Chair Kevin Warsh later ​this week.
• The dollar was pinned near multi-month lows as traders ​awaited details of a fresh U.S. sanctions package against Iran.
• U.S. Treasury Secretary ‌Scott ⁠Bessent is due to hold a press conference at 1800 GMT after threatening “the toughest sanctions in history” on Iran, while Iran’s foreign minister dismissed the threat of new U.S. sanctions as ​a sign of ​desperation.
• Wichard Cilliers, ⁠head of market risk at TreasuryONE, said the rand’s rally was being driven by broad dollar ​weakness, strong emerging-market sentiment and higher gold ​prices.
• Like other ⁠risk-sensitive currencies, the rand has been at the mercy of global market sentiment, particularly since the start of the U.S.-Iran ⁠war on ​February 28.
• South Africa’s benchmark 2035 government ​bond was slightly firmer in early deals, as the yield fell 1.5 basis ​points to 8.565%.

Reporting by Nilutpal Timsina; Editing by Alex Richardson.