The rand traded at 16.42 against the dollar, about 0.1% weaker than its previous close.
Despite the modest fall, the risk-sensitive currency was set to end the week more than 3% stronger versus the dollar. The rand surged on Wednesday after U.S. President Donald Trump announced a two-week ceasefire with Iran and has held most of those gains since.
Adam Phillips, treasury specialist at Umkhulu Treasury, said in a morning note that the market mood was “steady but nervous”. For the rand, “it all centres on (the talks in) Islamabad this weekend,” Phillips added.
South Africa will hold its weekly inflation-linked bond auction on Friday, but no major domestic economic data is scheduled for release.
February manufacturing production figures published on Thursday showed the sector was weak before the Iran war. Africa’s biggest economy had started to build momentum last year and investor confidence was on the rise.
Days before the Middle East conflict erupted, the South African government predicted growth would accelerate again this year to 1.6%, but that forecast will probably be revised.
- The South African rand weakened slightly to 16.42 against the dollar, down about 0.1% from the previous close.
- Despite the modest decline, the rand is set to end the week over 3% stronger versus the dollar, boosted by a two-week U.S.-Iran ceasefire announcement.
- Market sentiment remains "steady but nervous," with investors closely watching upcoming talks in Islamabad.
- South Africa will hold a weekly inflation-linked bond auction on Friday, with no major new domestic economic data expected.
- February manufacturing data showed weakness before the Middle East conflict, and earlier GDP growth forecasts for 2024 are likely to be revised downward.
Despite the modest fall, the risk-sensitive currency was set to end the week more than 3% stronger versus the dollar.
Adam Phillips, treasury specialist at
February manufacturing production figures published on
Days before the
