The South African rand was weaker in early trade on Tuesday as forex markets continued to be dominated by "risk-off" sentiment, while domestically focused traders awaited mining data for clues on the health of Africa's most industrialised economy. At 0756 GMT the rand traded at 16.4125 against the dollar , down about 0.2% from its previous close.
Geopolitical tensions remain sky-high and continue to rise as U.S. President Donald Trump's threats to impose extra tariffs on European allies soured global sentiment and sparked a rush into safe-haven assets.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data. Gold, traditionally seen as a store of value during times of instability, jumped past $4,700 per ounce for the first time on Tuesday, while silver traded near a record high. Domestically focused investors will look to the country's statistics agency which will release November mining output figures (ZAMNG=ECI), opens new tab at 0930 GMT. Production rose 5.8% year-on-year in October, with Reuters economists estimating a 3.9% increase this time around, aligning with stronger commodity prices.
South Africa's benchmark 2035 government bond was weak in early deals, with the yield rising 3.5 basis points to 8.45%.
