The South African rand strengthened in early trade on Monday, supported by easing oil prices, as investors weighed the prospects of a breakthrough in U.S.-Iran peace negotiations ahead of a local interest rate decision later in the week.
At 0541 GMT the rand traded at 16.3375 against the dollar, about 0.8% up from its previous close.
Oil prices hit two-week lows on Monday on optimism that the U.S. and Iran were moving closer towards a peace deal even though both countries remained at odds over key issues.
On Saturday, U.S. President Donald Trump said Washington and Iran had “largely negotiated” an understanding on a peace deal that would reopen the Strait of Hormuz, which carried a fifth of global shipments of oil and liquefied natural gas before the conflict.
Domestically focused investor attention will be pinned on the central bank’s rate decision on Thursday (ZAREPO=ECI), opens new tab.
Economists at
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