South Africa’s rand rose against the dollar as higher platinum prices boosted export income prospects for the world’s biggest producer of the precious metal.
The rand traded near its strongest level in almost a week as the price of platinum, which rivals gold as South Africa’s biggest export, rebounded from yesterday’s decline. The nation produces almost 80 percent of the world’s platinum and about 10 percent of its gold, typically causing the rand to move in tandem with the metals’ prices.
“The slight improvement in the platinum price along with other metals does provide a mildly positive undertone for the rand in a very thin market,” said Natheem Alexander, a currency trader in Cape Town at Peregrine Quant. “Trading volumes are dismal at the moment so the rand is struggling to find direction.”
The rand strengthened as much as 1.3 percent to 9.5600 per dollar, the highest level since Dec. 18, and traded at 9.6388 as of 10:23 a.m. in Johannesburg, from 9.6850 yesterday. It also climbed versus 13 of the 16 most-actively traded currencies monitored by Bloomberg, appreciating 0.1 percent against the euro to 13.4725.
From Bloomberg News.
The rand traded near its strongest level in almost a week as the price of platinum, which rivals gold as South Africa’s biggest export, rebounded from yesterday’s decline. The nation produces almost 80 percent of the world’s platinum and about 10 percent of its gold, typically causing the rand to move in tandem with the metals’ prices.
“The slight improvement in the platinum price along with other metals does provide a mildly positive undertone for the rand in a very thin market,” said Natheem Alexander, a currency trader in Cape Town at Peregrine Quant. “Trading volumes are dismal at the moment so the rand is struggling to find direction.”
The rand strengthened as much as 1.3 percent to 9.5600 per dollar, the highest level since Dec. 18, and traded at 9.6388 as of 10:23 a.m. in Johannesburg, from 9.6850 yesterday. It also climbed versus 13 of the 16 most-actively traded currencies monitored by Bloomberg, appreciating 0.1 percent against the euro to 13.4725.
From Bloomberg News.