JOHANNESBURG (Reuters) -South Africa’s rand weakened against a stronger dollar on Tuesday, hurt by lower gold prices as risk sentiment improved following U.S. President Donald Trump’s decision to postpone tariffs on the European Union.
At 1510 GMT, the country’s commodity-backed currency traded at 17.8900 against the dollar, about 0.2% softer than its previous close.
Meanwhile on the stock market, the Top-40 index was flat with mining companies under pressure as the price of gold fell by more than 1%.
South African miners Gold Fields, AngloGold Ashanti and Sibanye Stillwater all traded down for much of Tuesday’s trading session.
But shares of Harmony Gold, South Africa’s top gold producer by volume, fell more sharply after the company agreed to buy Australian miner Mac Copper Ltd in a deal worth $1.03 billion.
Domestic investor focus will firmly be on the central bank’s interest rate decision later this week.
Economists polled by Reuters expect the South African Reserve Bank (SARB) to cut its main interest rate by 25 basis points to 7.25% on Thursday.
South Africa’s inflation stayed below the SARB’s target range of 3% to 6% in April while the local currency has recovered from its recent losses to trade below 18 per dollar.
Central bank data earlier in the day showed South Africa’s composite leading business cycle indicator rose 1.1% month on month in March.
In fixed income, South Africa’s benchmark 2030 government bond was stronger, with the yield down 5 basis points at 8.84%.
(Reporting by Bhargav Acharya and Sfundo Parakozov; Editing by Bernadette Baum and Andrea Ricci)
