The South African (SA) Rand was range-bound in early trade on Tuesday as fresh United States (US) and Iranian strikes in the Gulf tested a fragile truce and weighed on risk appetite.
The Rand traded at 16.80 against the Dollar , hovering around its weakest level since April 29.
The US and Iran launched new attacks in the Gulf on Monday as they wrestled for control over the Strait of Hormuz with duelling maritime blockades.
Oil prices eased 1% on Tuesday after climbing by as much as 6% in the previous session.
SA is a net importer of petroleum products and is heavily exposed to fluctuations in global energy prices.
Africa’s largest economy last week extended fuel tax cuts for May and June to cushion the impact of the war on households.
SA’s benchmark 2035 government bond was weaker in early deals, as the yield rose 11.5 basis points to 8.895%.
–Reuters–
