The South African rand remained steady in early trading Monday, navigating influences from global economic trends, including U.S. financial indicators and Middle East tensions, analysts noted.
At 06:40 GMT, the currency was virtually unchanged, positioned at 19.0475 to the dollar, slightly shifting from Friday’s 19.0325 close.
Rand Merchant Bank highlighted in a briefing that the rand appeared stable at around 19 to the dollar. However, they warned surging U.S. Treasury yields could challenge this stability.
According to a report by Reuters, ETM Analytics underscored growing investor unease, noting a spike in demand for safe-haven assets due to fears that Middle East conflict might escalate.
“The rand is responding to international cues, with no local data impactful enough to sway the trend,” ETM explained.
Attention turns to forthcoming domestic data: Tuesday’s central bank indicators and Thursday’s producer inflation figures are in focus.
In bond markets, South Africa’s key 2030 government bond showed marginal strength, with yields retreating two basis points, landing at 10.780%.
