The South African rand weakened on Wednesday as the safe‑haven US dollar skimmed six-week lows, with markets focused on the prospect of renewed talks between the United States and Iran aimed at ending the war.
At 3.30pm, the risk-sensitive rand traded at 16.3650 against the dollar, weakening 0.2% from its previous close.
The US dollar skimmed six-week lows on Wednesday, having surrendered almost all the gains made since the Iran war erupted, as signs of another round of talks between Washington and Tehran lifted risk appetite.
Talks may resume next week
US President Donald Trump said on Tuesday talks with Tehran on ending the war could resume this week.
Although talks in Islamabad last weekend failed to produce a breakthrough, markets were clinging to hopes that diplomacy could yet deliver a resolution.
“With a possible second round of peace talks happening again in Pakistan later this week, operators are quietly positive,” Adam Phillips, treasury specialist at Umkhulu Treasury, said.
“All of this is keeping markets fairly static, however, with a slightly risk‑on mood,” Andre Cilliers, currency strategist at TreasuryONE said.
On the JSE, the Top-40 index was down 0.23%. South Africa’s benchmark 2035 government bond was marginally firmer, as the yield fell 1 basis point to 8.405%.
- The South African rand weakened on Wednesday as the safe‑haven US dollar skimmed six-week lows, with markets focused on the prospect of renewed talks between the United States and Iran aimed at ending the war.
- At 3.30pm, the risk-sensitive rand traded at 16.3650 against the dollar, weakening 0.2% from its previous close.
- The US dollar skimmed six-week lows on Wednesday, having surrendered almost all the gains made since the Iran war erupted, as signs of another round of talks between Washington and Tehran lifted risk appetite.
- Talks may resume next week US President Donald Trump said on Tuesday talks with Tehran on ending the war could resume this week.
- Although talks in Islamabad last weekend failed to produce a breakthrough, markets were clinging to hopes that diplomacy could yet deliver a resolution.
