The USD/ZAR currency pair hovered above a 1-month low of 16.3531 on Wednesday, as the US and Iran have agreed to a two-week ceasefire, which bolstered investor risk appetite, supporting the Rand.
US President Donald Trump announced in a post on Truth Social that he would suspend planned military strikes against Iran for two weeks, provided Tehran agrees to a complete, immediate, and safe opening of the Strait of Hormuz. Iran indicated that it had accepted a two-week ceasefire, with talks set to begin on Friday in Islamabad, Pakistan.
Trump also said that the US had received a 10-point proposal from Iran, which the US President described as a “workable basis for negotiations.”
In a separate statement, Iran’s Foreign Minister, Seyed Abbas Araghchi, said that safe passage through the crucial waterway would be possible for a two-week period.
As a result, Crude Oil prices pulled back markedly, easing energy-driven inflation fears and underpinning assets in net-energy importing nations such as South Africa.
Meanwhile, investors awaited the minutes from the Federal Reserve’s March meeting, which may provide fresh clues over monetary policy trajectory.
The USD/ZAR currency pair was last down 2.31% on the day to trade at 16.4038.
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