South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS
JOHANNESBURG, April 17 (Reuters) – The South African rand held steady in early trade on Friday as investors waited to see whether there will be a U.S.-Iran peace deal that could ease concerns over rising inflation and high interest rates.
- At 0655 GMT the rand traded at 16.4250 against the dollar , little changed from its Thursday close.
- Investors are watching for progress in U.S.-Iran talks, as any breakthrough or extension of the fragile ceasefire could ease oil and inflation fears and support further gains in gold.
- Gold, a major South African export, also held steady on Friday, staying on track for a fourth straight weekly gain.
- “Markets are still sitting on the fence – the current two-week ceasefire is almost up, so traders are waiting to see what happens next,” said Wichard Cilliers, head of market risk at TreasuryONE, in a research note.
- South Africa’s benchmark 2035 government bond was slightly weaker in early deals, as the yield rose 4 basis points to 8.51%.
- Ahead of the weekend, analysts said gold and platinum – which have been two major factors in supporting the rand over the last year – lacked directional momentum.
- Next week, domestically focused investors will look to the country’s statistics agency’s release of inflation and retail sales data.
Reporting by Anathi Madubela; Editing by Barbara Lewis
