The South African rand weakened in early trade on Friday as investors pared exposure to riskier assets on geopolitical tensions, speculation about U.S. rate cuts, and the prolonged U.S. government shutdown.
At 07:27 GMT, the rand traded at 17.44 against the dollar, about 0.6% down from its previous close.
“The ZAR is staying in a tight range. While gold has had its best week in five years, the ‘risk off’ sentiment is not allowing the ZAR to push ahead,” said Adam Phillips, treasury specialist at Umkhulu Treasury, in a research note.
ANOTHER RECORD HIGH FOR GOLD
The flight to safety saw gold hit a record high of $4,378.69 per ounce. Bullion is set for a weekly gain of 8.5%, its biggest since September 2008 during the global financial crisis. South Africa is a major gold producer.
Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S.
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