Market News
South African rand slips as commodities take a breather - REUTERS
JOHANNESBURG, Oct 10 (Reuters) – The South African rand softened in early trade on Friday as investors booked profits from a commodity rally spurred by geopolitical tensions, a U.S. government shutdown and tariff-related economic uncertainties.
At 0840 GMT the rand traded at 17.2350 against the dollar, about 0.2% weaker than Thursday’s close.
The dollar was slightly down against a basket of currencies as a continuing government shutdown and little to no economic data kept investors on edge.
Most commodities were steady on Friday as traders took profits from a rally sparked by increased demand for safe-haven assets.
Gold, traditionally seen as a store of value during times of instability, surged past $4,000 per ounce for the first time on Wednesday but cooled below that mark following a ceasefire deal between Israel and Hamas.
“These metals (gold, platinum and palladium) are important export products for South Africa and most recently accounted for around 17% of South African exports,” Commerzbank analyst Volkmar Baur said in a research note.
Baur added that the recent strong prices are supporting the country’s exports at a time when high U.S. tariffs have made its foreign trade a cause of concern for currency traders.
Domestically-focused investors will look to a business confidence index, mining production data and retail sales figures next week for clues on the health of Africa’s largest economy.
On the Johannesburg Stock Exchange, the Top-40 index last traded down 1.1%, shedding some of its recent gains.
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South Africa’s benchmark 2035 government bond also weakened in early deals, as the yield rose three basis points to 9.085%.
