South African rand steady as investors track stalled US-Iran talks, await local month-end data
The South African rand was steady in early trade on Friday, as stalled peace negotiations between the US and Iran dampened hopes for an immediate easing of Middle East tensions, while domestically focussed traders eye month-end data for clues on the health of Africa's largest economy.
At 0717 GMT the rand traded at 16.6175 against the dollar, little moved from its previous close.
While Lebanon and Israel extended their ceasefire for three weeks ahead of its expiration on Sunday, Iran showed off its control over the Strait of Hormuz by releasing footage of its commandos storming a huge cargo ship, leaving the timing of the reopening of the world's most important shipping corridor uncertain and keeping oil prices elevated.
South Africa is a net importer of energy, leaving it highly exposed to swings in global prices.
Headline consumer inflation edged up last month, but analysts said the increase would be far larger in April when fuel price hikes triggered by the US-Israeli war on Iran have filtered through into consumer prices.
"The biggest risk right now is a weekend surprise, geopolitical shocks have a habit of dropping on Saturdays and Sundays, and traders are nervous heading into the close," said Wichard Cilliers, head of market risk at TreasuryONE.
Cilliers added: "The situation could unravel quickly if diplomacy fails completely."
Domestic investor focus next week will be on South Africa's business cycle leading indicator, producer inflation numbers, money supply and private sector credit data, trade balance and budget balance figures.
South Africa's benchmark 2035 government bond was weaker in early deals, as the yield rose 6.5 basis points to 8.69%.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
The Beneficiation Academy is a certified training institution that follows all compliance legislation and is accredited with various Sector...
VISIT SHOWROOM
Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...
VISIT SHOWROOM
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
