South African assets rose on Monday, with the rand strengthening, stocks climbing and government bonds firming as the dollar weakened and oil prices slipped to a three-month low following a preliminary agreement between the U.S. and Iran.
At 1408 GMT, the rand traded at 16.1725 against the dollar , about 0.8% up from its previous close.
Global stocks and bonds rallied, while oil prices fell 5% after the U.S.-Iran deal eased inflation concerns, with the dollar near a 10-day low against a basket of currencies as demand for safe-haven assets waned.
Prices of South African exports rose, with gold up for a third straight session and platinum gaining more than 4%.
“The rand is likely to see some further strength, and other financial market indicators improve for South Africa as well,” Investec chief economist Annabel Bishop said.
Separately, Statistics South Africa will release May inflation (ZACPIY=ECI), opens new tab data on Wednesday, with analysts polled by Reuters expecting it to accelerate to 4.7% year-on-year, from 4% in April.
Traders will also watch retail sales data (ZARET=ECI), opens new tab, due on Wednesday, for further clues on the health of Africa’s biggest economy.
On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab rose more than 3%, led by strong gains in resources and mining stocks.
South Africa’s benchmark 2035 government bond was stronger, as the yield fell 14.5 basis points to 8.36%.
