JOHANNESBURG (Reuters) – South Africa’s rand edged lower in early trade on Tuesday, with analysts pointing to a decline in metal prices as the reason for the currency’s weakness.
At 0715 GMT, the rand traded at 19.2400 against the dollar, 0.2% weaker than its previous close.
The dollar was last trading 0.019% firmer against a basket of currencies.
“The main event of the past two days that has detracted from the rand has been the sharp retreat in the gold, platinum and other industrial metals prices,” ETM Analytics said in a research note.
Gold prices touched a more than two-week low on Tuesday, declining as concerns of an escalation in the Middle East crisis eased and on profit-taking.
South Africa’s leading indicator, which collects data on vehicle sales, business confidence, money supply and other factors, rose 1.7% month-on-month in February, central bank data showed on Tuesday.
On the stock market, the Top-40 index was up 0.6% while the broader all-share was up 0.5% in early trade.
South Africa’s benchmark 2030 government bond was almost unchanged in early deals, with the yield at 10.760%.
(Reporting by Anait Miridzhanian; Editing by Sharon Singleton)
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