The South African (SA) Rand weakened against the Dollar on Monday, tracking losses among emerging market currencies as escalating tensions in the Middle East dampened risk sentiment.
The Rand traded at 16.3825 per Dollar , roughly down 0.5% from its previous close.
The United States (US) Dollar index crept higher against a basket of currencies on the day as renewed conflict in the Middle East sent oil prices 4% higher.
US and Iranian forces have exchanged heavy missile and drone assaults, with Tehran targeting US facilities in states across the Gulf on Sunday and saying it had again closed the vital Strait of Hormuz.
Some 20% of the world’s oil and liquefied natural gas transited the strait before the war began at the end of February.
“The Rand appears to be a by-stander to what is going on,” said Umkhulu Treasury’s Adam Phillips, adding that the currency was likely to weaken beyond the 16.40 per Dollar level during the session.
SA’s benchmark 2035 government bond weakened in early deals, as the yield rose 5 basis points to 8.35%.
–Reuters–
