JOHANNESBURG (Reuters) -The South African rand was buoyed by record gold prices on Monday as investors opted for the safe-haven metal after U.S. President Donald Trump renewed tariff threats against China.
The commodity-backed currency fell about 1.7% after Trump’s announcement on Friday, but has tried to pare some of its losses.
At 1422 GMT, the rand traded at 17.3425 against the dollar, roughly up 1% on Friday’s close, while the greenback last traded 0.2% stronger against a basket of currencies.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.
“Risk appetite appears to be back at this week’s start, so one should expect the ZAR to make a modest recovery,” said ETM Analytics in a research note.
Domestically-focused investors will look to a business confidence survey, mining production data and retail sales figures this week for clues to the health of Africa’s largest economy.
“A harsh reminder of the opportunity cost SA has suffered will likely come in the form of the latest mining production data later this week, highlighting SA’s inability to take advantage of the commodity price boom,” said ETM Analytics.
On the Johannesburg Stock Exchange, the Top-40 index was last up 0.8%.
South Africa’s benchmark 2035 government bond was slightly stronger as the yield fell one basis point to 9.115%.
(Reporting by Anathi Madubela and Sfundo Parakozov;Editing by William Maclean and Joe Bavier)
