Market News
South Africa South African rand gains as precious metals prices jump - REUTERS
BY Alexander Winning
JOHANNESBURG, Dec 22 (Reuters) – The South African rand gained against the U.S. dollar on Monday as prices of precious metals, a key export, rose on global markets.
The rand was up about 0.4% from Fridays close at 16.71 to the dollar by 0744 GMT.
Gold hit a record high on Monday, riding on growing expectations of further U.S. interest rate cuts and strong safe-haven demand. Platinum, meanwhile, touched its highest in more than 17 years. “We could see a test of the 16.70 (rand to the dollar) level again on the back of a surge in precious metals prices and strong exporter inflows,” Wichard Cilliers, head of market risk at TreasuryONE, said in a research note.
The rand has had a strong year, rising more than 12% against the dollar thanks to South Africa’s improved fiscal performance, success containing inflation and soaring precious metals prices.
