South Africa’s rand experienced volatility in early Friday trading following reports of an Israeli attack on Iran, which dampened risk sentiment and triggered a sell-off in currency markets. The rand initially reached a near two-month low of 19.3800 against the dollar as investors sought refuge in safe-haven assets like the dollar and gold.
By 0802 GMT, the rand was trading at 19.2300 against the dollar, down 0.38% from its previous close. On the stock market, both the Top-40 index and the broader all-share index were trading around 0.7% weaker in early trade.
Although the dollar remained near a five-month high, it was last down 0.1% against a basket of currencies. Additionally, Neil Shearing, chief economist at Capital Economics, suggested that Iran lifting flight restrictions may have contributed to market stabilization.
Source: Reuters