South Africa’s rand was on track to record its first weekly gain in five weeks on Friday, supported by rising gold prices, a weaker dollar and falling oil prices.
At 0830 GMT, the rand traded at 16.5275 per dollar, gaining about 0.4% from its previous close and 0.7% for the week. The currency had fallen 2% the previous week, its sharpest weekly decline during the recent losing streak.
Gold prices, a major source of South African export revenue, rose more than 1% on Friday, while the dollar remained broadly unchanged against a basket of major currencies as investors assessed inflation risks and the outlook for US interest rates.
Lower oil prices also supported the rand by easing pressure on South Africa, a net energy importer. Oil fell after US President Donald Trump said Washington would not attack Iran before elections next month, helping ease concerns about potential supply disruptions.
Andre Cilliers of TreasuryONE said the rand’s near term direction would depend on whether improving global investor sentiment continued or renewed pressure from oil prices and bond yields strengthened demand for the dollar.
On the Johannesburg Stock Exchange, the Top 40 index rose 1.4% in early trading. South Africa’s benchmark 2035 government bond also gained, with its yield falling seven basis points to 8.795%.
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