The South African rand came under pressure on Thursday, as the latest escalation in hostilities between the United States and Iran pushed oil prices back up and reignited inflation concerns.
• At 08:35, the rand traded at 16.35 against the dollar, near its previous close as investors held back from making big bets.
• The US struck Iran’s coastal defences and missile sites on Wednesday after reimposing a naval blockade of its ports, while Iran threatened to shut off more regional energy exports, saying it was engaged in an “existential war” with America.
• The US dollar last traded flat against a basket of currencies, while oil prices rose for a fourth consecutive day on Thursday, with Brent crude futures last trading near a one-month high at $85 a barrel.
• “While higher energy costs could pressure South Africa’s import bill, the rand’s commodity linkage provides a partial offset through improved terms of trade if platinum group metals hold firm,” said ETM analytics in a research note.
• South Africa’s benchmark 2035 government bond was little changed in early deals, with the yield at 8.39%.
- The South African rand weakened on Thursday due to renewed US-Iran tensions driving oil prices higher and stoking inflation fears.
- By 08:35, the rand traded at 16.35 to the dollar, close to its previous close as investors stayed cautious.
- The US attacked Iranian coastal defenses and missile sites after reimposing a naval blockade, while Iran threatened further regional energy export shutdowns.
- Brent crude oil rose for the fourth day, nearing $85 a barrel, while the US dollar remained stable against other currencies.
- Despite higher energy costs potentially increasing South Africa's import bill, the rand may benefit partially from commodity exports like platinum group metals, with government bond yields largely unchanged.
• At 08:35, the rand traded at 16.35 against the dollar, near its previous close as investors held back from making big bets.
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• "While higher energy costs could pressure
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