South African rand holds near multi-month high as Iran sanctions loom

Business Recorder reported that the rand, South Africa's currency, started the week on Monday near its best level since the Iran war began. At 0636 GMT it changed hands at 15.99 against the dollar, gaining roughly 0.2 per cent. Support came from a weaker greenback, gold at its highest point in over three months, and firmer emerging-market currencies.

Market participants are still waiting for specifics on a fresh American sanctions measure targeting Iran, with the dollar still near recent lows. US Treasury Secretary Scott Bessent is scheduled to hold a press conference at 1800 GMT after warning of the harshest sanctions yet, while Iran's foreign minister dismissed the American threat as evidence of desperation.

Wichard Cilliers of TreasuryONE, who heads market risk there, attributed the rand's rally to broad dollar weakness, firm emerging-market sentiment and higher gold prices. South Africa's 2035 government bond was marginally firmer in early trade, with its yield down 1.5 basis points to 8.565 per cent.