South African rand weaker on risk aversion, geopolitical jitters
The South African rand weakened in early trade on Friday as investors pared exposure to riskier assets on geopolitical tensions, speculation about US rate cuts, and the prolonged US government shutdown.
At 0727 GMT, the rand traded at 17.44 against the dollar, about 0.6% down from its previous close.
"The ZAR is staying in a tight range. While gold has had its best week in five years, the 'risk off' sentiment is not allowing the ZAR to push ahead," said Adam Phillips, treasury specialist at Umkhulu Treasury, in a research note.
ANOTHER RECORD HIGH FOR GOLD
The flight to safety saw gold hit a record high of $4 378.69 per ounce. Bullion is set for a weekly gain of 8.5%, its biggest since September 2008 during the global financial crisis. South Africa is a major gold producer.
Like other risk-sensitive currencies, the rand often takes cues from global drivers like US monetary policy in addition to domestic data.
Domestically-focused investors will look to the release of consumer price inflation data next week for clues on the health of Africa's largest industrialised economy.
On the Johannesburg Stock Exchange, the Top-40 index was last down 0.8%.
South Africa's benchmark 2035 government bond was steady in early deals, with the yield down 1 basis point to 9.01%.
Article Enquiry
Email Article
Save Article
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest News
Showroom
REELIN is Currently the largest supplier of Bearings to Transnet. We have contracts to supply bearings, draft gears slackadjusters and other...
VISIT SHOWROOM
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
