Japan PPI inflation slips to 11-mth low in July
The South African rand strengthened against the U.S. dollar after Washington announced plans to start talks aimed at resolving the Russia-Ukraine conflict. According to Reuters, the rand rose by about 0.4%, trading at 18.455 to the dollar as of 0714 GMT.
The currency’s rebound was influenced by statements from U.S. President Donald Trump on Wednesday evening, revealing that both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy had communicated their desire for peace during separate calls with him.
This development took precedence over the higher-than-expected U.S. consumer prices for January, contributing to a decrease in the dollar’s value.
Analysts at ETM Analytics noted that the weakening of the U.S. dollar provided some relief for the rand, which they expect to fluctuate within a narrow range until investors find a definitive direction.
Additionally, the rand found support from a surge in gold prices, which is significant given South Africa’s status as a leading producer of the metal.
Investors in South Africa are now looking ahead to the release of the December mining production data and a scheduled address to parliament by President Cyril Ramaphosa.
The positive sentiment also extended to South Africa’s government bonds, with the benchmark 2030 bond yield dropping by 2 basis points, settling at 9.185%. This indicates a strengthening of the bond market alongside the national currency.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.