South African Rand Edges Higher as US Dollar Stays Weak
The rand rose 0.4% on Friday as a weaker dollar and U.S.-Iran peace hopes boosted risk appetite. Markets remain cautious ahead of domestic inflation data.
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The South African rand edged higher on Friday as the dollar remained under pressure, buoyed by optimism surrounding a potential peace deal between the United States and Iran. Such a diplomatic breakthrough is seen as a key factor that could mitigate concerns regarding rising inflation and the trajectory of high interest rates.
At 1235 GMT, the USD/ZAR pair was trading at 16.3400, reflecting a 0.4% gain for the rand compared to Thursday's close. The currency had previously traded flat during the early session but found momentum as the greenback hovered near multi-week lows.
