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Rand Garners Strength As Gold Strengthens

ZAR

Spot USD/ZAR has faltered past yesterday's worst levels, as the Rand is one of the world's best-performing currencies today. The rate last deals at ZAR18.0757, down ~1,230 pips on the session.

  • From a cross-asset perspective, local-currency bond yields have eased off across the curve, with 10-year breakeven inflation rate landing at 6.40%. The FTSE/JSE Africa All Share Index trades on the back foot. The commodity complex remains weaker, but the precious metals subindex has added ~0.4%.
  • Fresh demand for gold and broader USD sales observed after the release of a worse than expected Philly Fed Survey have translated into USD/ZAR weakness, with little in the way of South African headlines crossing the wires.

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