Johannesburg — South Africa’s rand was trading at its strongest level in over a month early on Friday, after a week of gains supported by surging gold prices.
At 0640 GMT, the rand traded at 18.6850 against the U.S. dollar, about the same as its previous close. It was the strongest level seen since early February.
“The rand has enjoyed a stellar week so far, capitalising on some appreciation that began last week,” said ETM Analytics in a research note.
“The USD-ZAR has cracked below some key technical support and generated momentum of its own, but it is unclear whether the momentum is about to fade,” it added.
The rand has been boosted by the price of gold, one of South Africa’s key exports, which is hovering near a historic high.
But local economic data releases this week were broadly negative, with the current account deficit widening more than expected and net foreign reserves falling in February.
South Africa’s public enterprises minister Pravin Gordhan told Reuters on Friday that he would retire after this year’s general elections in May.
The poor performance of state-owned enterprises such as power utility Eskom and logistics firm Transnet has been a key factor in dragging down South Africa’s economic growth.
South Africa’s benchmark 2030 government bond was marginally stronger in early deals, with the yield down 1 basis point to 10.055%.
*Nellie Peyton, editing: Mark Potter – Reuters
