JOHANNESBURG, Jan 13 (Reuters) – The South African rand softened in early trade on Tuesday as investors took profits after the currency benefited in the previous session from a surge in gold prices.<\/p>\n
At 0815 GMT the rand traded at 16.4250 against the dollar , about 0.2% weaker than its previous close.<\/p>\n
Sign up here.<\/a><\/p>\n It gained around 0.5% on Monday, boosted by gold which climbed more than 2%<\/a> to an all-time high as investors sought the safe haven asset after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell.<\/p>\n Bullion also edged lower on Tuesday as some traders booked short-term profit.<\/p>\n Like other risk-sensitive currencies, the rand is expected to take cues from global drivers like the unrest in Iran<\/a> in addition to concerns over the Fed’s independence<\/a>.<\/p>\n On the domestic front, traders are also tracking developments around a potential extension of the U.S. trade preference programme, the African Growth and Opportunity Act (AGOA).<\/p>\n The U.S. House of Representatives approved a three-year extension, but uncertainty remains over whether South Africa will be excluded, given strained diplomatic relations between Washington and Pretoria.<\/p>\n The bill will next go to the U.S. Senate.<\/p>\n On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab<\/a> was last up 0.2%.<\/p>\n South Africa’s benchmark 2035 government bond was flat in early deals, with the yield at 8.305%.<\/p>\n Reporting by Sfundo Parakozov; Editing by Susan Fenton<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n