Market News
South African rand strengthens as gold hits fresh peak - REUTERS
JOHANNESBURG, March 31 (Reuters) – South Africa’s rand strengthened on Monday, as gold hit a fresh high and optimism grew over the prospect of an agreement between the two biggest government partners on the budget.
At 0728 GMT, the rand traded at 18.2375 against the dollar, about 1.1% stronger than its previous close.
Trade in the rand was volatile last week amid deadlocked budget negotiations and apprehension over U.S. President Donald Trump’s tariff plans.
Gold prices touched an all-time high on Monday as investors stressing over a global trade war and economic slowdown from the world’s biggest economy turned towards the safe-haven asset. South Africa is a major producer of the precious metal.
The domestic focus this week will be on the African National Congress (ANC) and Democratic Alliance (DA).
Local news website News24 reported on Monday that the two parties were close to striking a deal that would see the national budget being passed. However, the BusinessDay newspaper said the talks were still deadlocked.
On the stock market, the Top-40 index was last down about 0.5%.
South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 9.5 basis points to 9.06%.
(Reporting by Sfundo Parakozov; Editing by Bhargav Acharya and Philippa Fletcher)
