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South African Rand Gains as Precious Metals Prices Jump

JOHANNESBURG, Dec 22 (Reuters) - The South African rand gained against the U.S. dollar on Monday as prices of precious metals, a key export, rose on global markets.

The rand was up about 0.4% from Fridays close at 16.71 to the dollar by 0744 GMT.

Johannesburg-listed stocks also firmed, with the main bourse's Top-40 Index last up 1.3%.

Gold hit a record high on Monday, riding on growing expectations of further U.S. interest rate cuts and strong safe-haven demand. Platinum, meanwhile, touched its highest in more than 17 years.

"We could see a test of the 16.70 (rand to the dollar) level again on the back of a surge in precious metals prices and strong exporter inflows," Wichard Cilliers, head of market risk at TreasuryONE, said in a research note.

The rand has had a strong year, rising more than 12% against the dollar thanks to South Africa's improved fiscal performance, success containing inflation and soaring precious metals prices.

Reporting by Alexander Winning Editing by David Goodman

Source: Reuters


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