South African Rand Rallies Against Dollar, Euro, Sterling
The South African Rand strengthened against its major currencies as easing Middle East tensions triggered low-dollar demand in the forex market.
ZAR surged to R16.38 per dollar, R19.25 per euro, and R22.27 per pound, First National Bank (FNB) said in a morning brief.
FX analysts stated that the South African local currency gained on renewed hopes of a peace agreement between the United States and Iran.
A significant number of emerging market currencies have broadly returned to pre-war levels, the bank said as gold gained attention in the commodity market.
Gold held around $4 696 an ounce, jumping in the previous session, supported by easing inflation concerns as oil prices fell on hopes of a proposed US-Iran deal that could reopen the Strait of Hormuz, though discussions continue.
Despite this, the Federal Reserve Bank of Chicago President cautioned that inflation remains above target and has recently picked up.
Brent crude plunged as much as 12% yesterday to intraday lows of around $96.73 per barrel, but has since settled around $101.96 per barrel this morning. US oil exports have hit a record high, reflecting increased global demand for American supply amid conflict-driven shortages. MTN Hits All-Time High as Buyers Price in Earnings Beat