JOHANNESBURG, Jan 13 – The South African rand weakened in early trade on Tuesday as investors booked profits after the currency gained in the previous session, buoyed by a sharp rise in gold prices.
By 0815 GMT, the rand was trading at 16.4250 to the dollar, around 0.2% weaker than its prior close. The currency had advanced roughly 0.5% on Monday, supported by a surge in gold, which climbed more than 2% to a record high as investors sought safe-haven assets.
Gold prices were driven higher after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, raising fresh concerns about the independence of the U.S. central bank. Bullion edged lower on Tuesday as some traders took short-term profits.
As a risk-sensitive currency, the rand continues to track global developments closely. Market participants are monitoring geopolitical tensions in Iran alongside broader uncertainty around U.S. monetary policy and governance.
On the domestic front, attention is also focused on the future of the African Growth and Opportunity Act, the U.S. trade preference programme that underpins a significant share of South Africa’s exports.
While the U.S. House of Representatives has approved a three-year extension, uncertainty remains over whether South Africa could be excluded amid strained diplomatic relations with Washington.
Traders say global risk appetite and developments around trade access are likely to remain key drivers of the rand in the near term.
