The domestic currency is still stronger than a year ago.
Easing tensions in the Middle East buoyed the rand on Monday, with the local currency strengthening to its firmest level in weeks as hopes of a US-Iran breakthrough sent oil prices tumbling – raising hopes that there may be a fuel price cut.
The rand traded near R16.30 on Monday morning, recovering sharply from about R16.78 a week earlier, Investec data shows, as markets reacted positively to signs that negotiations around reopening the Strait of Hormuz were gaining traction.
According to Trading Economics, the rand strengthened to its highest level since mid-April as investors increasingly positioned for a de-escalation in tensions between the US and Iran.
Markets were further encouraged after US President Donald Trump said a memorandum of understanding had largely been negotiated, although he cautioned he would not “rush” a deal, Trading Economics noted.
