South African rand weakens on profit taking after gold-led gains
The South African rand weakened on Tuesday as investors took profits after the currency benefited from a surge in gold prices during the previous session.
At 1303 GMT the rand traded at 16.4650 against the dollar, about 0.5% weaker than its previous close.
It gained around 0.5% on Monday, boosted by gold which climbed more than 2% to an all-time high as investors sought the safe haven asset after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell.
Bullion also edged lower on Tuesday as some traders booked short-term profit.
Like other risk-sensitive currencies, the rand is expected to take its cue from global drivers such as the unrest in Iran in addition to concerns over the Fed's independence.
On the domestic front, traders are also tracking developments around a potential extension of the U.S. trade preference programme, the African Growth and Opportunity Act (AGOA).
The US House of Representatives approved a three-year extension, but uncertainty remains over whether South Africa will be excluded, given strained diplomatic relations between Washington and Pretoria.
The bill will next go to the US Senate.
On the Johannesburg Stock Exchange, the Top-40 index was last down 0.04%.
South Africa's benchmark 2035 government bond was flat, with the yield at 8.295%.
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