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ZAR Stable as Rising Precious Metals Offset Stronger Dollar

JOHANNESBURG, Nov 22 (Reuters) - The South African rand was little changed on Friday as stronger precious metal prices and the central bank's cautious approach to cutting interest rates offset a stronger dollar.

At 1410 GMT, the rand traded at 18.1025 against the U.S. dollar , near Thursday's closing level of 18.0925.

The dollar was up about 0.3% on global markets .

South Africa is a major producer of precious metals including platinum and gold, which advanced on Friday.

Gold prices were up about 0.8% after hitting a two-week peak and were headed for their best weekly performance in more than a year, as investors sought safe-haven assets as Russia-Ukraine tensions escalated.

On Thursday, the South African Reserve Bank (SARB) opted for a small cut to its main interest rate, quashing hopes for a larger move, while a decision by S&P Global last week to raise the outlook on South African sovereign credit rating also boosted local sentiment.

Annabel Bishop, chief economist at Investec, called the SARB's approach "slow and steady" in a research note.

Analysts say the rand remains highly sensitive to global drivers, including expectations for U.S. President-elect Donald Trump's policies. It has lost almost 4% against the dollar since the Nov. 5 U.S. election, as emerging market currencies have come under pressure.

On the Johannesburg Stock Exchange, the Top-40 index was last up 0.1%. The benchmark 2030 government bond slipped, with the yield up 3 basis points to 9.005%.

Reporting by Tannur Anders; Editing by Alexander Winning and Kevin Liffey

Source: Reuters


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