South African rand set to snap four-week losing streak
EZA•The rand was up about 0.7% on the week and on track to end a four-week losing streak, supported by firmer gold prices, a subdued dollar and lower oil prices.
1. Rand gains on week
At 0830 GMT, the rand traded at 16.5275 per dollar, up roughly 0.4% from its previous close and about 0.7% on the week. Gold rose more than 1%, the dollar was flat against a basket of currencies and oil prices fell. The Johannesburg Stock Exchange’s Top-40 index rose 1.4% in early trade, while the yield on South Africa’s 2035 government bond fell 7 basis points to 8.795%.
2. Outlook depends on sentiment
TreasuryONE’s Andre Cilliers said the rand’s near-term direction would depend on whether improved global risk sentiment holds or renewed oil and yield pressure drives investors back towards the dollar.
