JOHANNESBURG (Reuters) – South Africa’s rand gained against a weaker dollar on Thursday while local platinum group metals (PGMs) producers’ shares soared over concerns about supply sanctions on top palladium producer Russia.
At 1520 GMT, the rand traded at 17.6825 against the dollar, about 0.6% stronger than its previous close.
“The rand is trading higher today, boosted by a weaker dollar that is lifting emerging market currencies,” Zain Vawda, market analyst at MarketPulse by OANDA, said.
The dollar index was last down about 0.2% against a basket of major currencies, pausing a recent rally fuelled by bets on a slower pace of interest rate cuts by the Federal Reserve and a potential second presidency for Donald Trump.
With no major domestic economic data releases due in South Africa on Friday, the risk-sensitive rand is set to take cues from the direction of the dollar.
Johannesburg-listed PGMs miners surged on Thursday as global palladium prices rose after the U.S. asked its G-7 peers to consider sanctions on top-producer Russia.
The shares of Anglo American Platinum and Northam Platinum closed more than 13% higher.
The blue-chip Top-40 index closed about 0.45% higher.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 15 basis points at 9.355%.
(Reporting by Bhargav Acharya and Tannur Anders; Editing by Kirsten Donovan and Andrew Heavens)
