Rand holds firm as Africa's richest country hustles to save US trade access
South Africa's rand held steady at 17.8550 against the US dollar amid ongoing trade discussions with the US.
The country aims to maintain access to the African Growth and Opportunity Act (AGOA) by proposing significant trade commitments.
Domestically, South Africa's central bank is expected to announce a potential 25-basis-point rate cut.
South Africa's rand held steady in early trading on Wednesday as the country faced intensifying pressure to secure a key trade agreement with the United States ahead of an August 1 deadline.
At 0705 GMT the rand traded at 17.8550 against the dollar , little changed from its previous close, Reuters reported.
Pretoria is still awaiting a response to its offer aimed at preserving access to the African Growth and Opportunity Act (AGOA), Washington's flagship trade program with sub-Saharan Africa.
The proposal reportedly includes commitments to purchase U.S. liquefied natural gas, ease restrictions on American poultry imports, and channel $3.3 billion into U.S. sectors such as mining and infrastructure.
The U.S. dollar, meanwhile, remained softer against a basket of major currencies as investors looked ahead to the Federal Reserve's interest rate decision, which could signal the central bank's next steps on monetary policy.
Domestically, South Africa's central bank is expected to announce its own rate decision on Thursday, with a 25-basis-point cut widely anticipated by economists.
In bond markets, South Africa's benchmark 2035 government bond strengthened slightly, with the yield falling 3.5 basis points to 9.785%.
Mixed currency outlook across Africa
This time last year, the rand recorded its longest winning streak in 13 years. Just last month, it ranked among the eight strongest currencies on the continent.
According to the African Development Bank (AfDB), 25 African countries are projected to see their currencies appreciate in 2025, reflecting a mixed but cautiously optimistic outlook for the continent's macroeconomic stability.
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