South African rand gains on weaker dollar before Ramaphosa’s speech

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South African rand gains on weaker dollar before Ramaphosa’s speech

10:04 CAT | 07 Feb 2023

FILE - Illustration photo shows a two-rand coin above a South Africa flag April 12, 2017. [File photo: Reuters/Thomas White]

The South African rand firmed against a weaker U.S. dollar on Tuesday, ahead of an address by President Cyril Ramaphosa at the Investing in African Mining Indaba conference in Cape Town.

At 0614 GMT, the rand ZAR=D3 traded at 17.6100 against the dollar, about 0.3% stronger than its previous close.

The dollar eased but was still near a one-month peak, after traders raised their forecasts for how high the U.S. Federal Reserve might raise interest rates.

Ramaphosa’s speech at the Mining Indaba is part of his administration’s efforts to boost investment and demonstrate that officials are working to end crippling power cuts.

Later this week, the focus will turn to Ramaphosa’s annual State of the Nation Address on Thursday and a rumoured cabinet reshuffle.

The Mining Indaba, which brings together mining company executives, investors, and mines ministers from across Africa and beyond to discuss industry issues, will run until Thursday.

South Africa’s net foreign reserves rose to $54.844 billion in January from $53.827 billion in December, Reserve Bank figures showed on Tuesday.

The government’s benchmark 2030 bond ZAR2030= was slightly weaker in early deals, with the yield up 1 basis point at 9.710%.

Source: Reuters