South African rand firms as Middle East peace hopes lift sentiment
The South African rand strengthened in early Thursday trade, supported by a weaker US dollar and rising investor optimism that the war in the Middle East may be nearing an end.
At 0611 GMT, the rand traded at 16.3350 against the dollar, about 0.3% higher than its previous close.
The US dollar weakened against a basket of currencies, falling to its lowest level in six weeks, making greenback-denominated commodities more affordable for holders of other currencies.
Gold, a major South African export, rose on hopes the war might be ending, as Pakistani mediation in Tehran and signals from the Trump administration boosted expectations of a deal to reopen the Strait of Hormuz.
The Minerals Council of South Africa warned on Wednesday that the war in the Middle East would significantly affect the industry's profitability this year.
The council said miners' average monthly fuel bill, normally about R2.9-billion, was expected to surge to roughly R4.3-billion in April and remain elevated for as long as disruptions persist in the Strait of Hormuz.
South Africa's benchmark 2035 government bond was flat in early trading, with the yield at 8.405%.
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