JOHANNESBURG (Reuters) -South African assets firmed on Wednesday as uncertainty around U.S. tariffs lifted gold prices to record highs and depressed the dollar.
At 1504 GMT, the rand traded at 18.8150 against the U.S. dollar, about 1% stronger than its previous close.
The dollar last traded about 0.6% weaker against a basket of currencies.
Gold extended its record run on Wednesday as investors bought the safe-haven asset to guard against escalating U.S.-China trade tensions. South Africa is a major producer of the precious metal.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed up about 0.3% after hitting an all-time high earlier in the session.
Domestic investors remain focused on developments in the country’s budget impasse, with the two biggest parties in South Africa’s government of national unity (GNU) at odds over a proposed value-added tax hike on May 1.
“The ZAR’s near-term recovery has largely played out, but it could extend to any more positive news from the GNU regarding a budget most parties can support,” said ETM Analytics in a research note.
South Africa’s benchmark 2030 government bond strengthened, with the yield down 4 basis points to 9.18%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Sharon Singleton and Richard Chang)
