Market News
South African rand lifted by gold, focus on inflation data next week - REUTERS
JOHANNESBURG, Aug 15 (Reuters) – South Africa’s rand firmed against a weaker dollar on Friday, helped by higher gold prices as worries over the United States’ fiscal health sent investors into the safe-haven asset.
At 0807 GMT, the rand traded at 17.5250 against the dollar, about 0.5% stronger than its previous close.
Gold prices gained on Friday, boosted by a pullback in the dollar which was last trading down about 0.3% against a basket of currencies.
Like other major producers of precious metals, South Africa often benefits from higher gold prices.
Investors will keep a keen eye on domestic inflation figures due on Wednesday next week, for clues about the health of Africa’s most industrialised economy.
“… it has been an impressive week for the ZAR so far, as it started the week above 17.70 and could make it 10 cents stronger at the close of trade today,” said ETM Analytics in a research note.
“Intra-day U.S. retail sales and industrial production will take centre stage and will likely determine how the USD closes out the week,” said the note.
On the stock market, the Johannesburg Stock Exchange’s index was up 0.3%.
South Africa’s benchmark 2035 government bond was also slightly firmer in early deals, with the yield down 1 basis point to 9.595%.
(Reporting by Sfundo Parakozov; Editing by Mark Potter)
