The South African (SA) Rand edged lower in early trading on Monday as renewed supply disruptions in ​the Middle East pushed oil prices higher, adding ‌pressure on the currency, while investors looked ahead to the United States (US) Federal Reserve’s policy meeting later this week for clues on ​the interest rate outlook.

The Rand ​traded at 16.2350 against the Dollar, about 0.6% ⁠down from its previous close.

Oil prices rose about 3% on ​Monday, as attacks on Saudi infrastructure and Gulf shipping deepened ​supply concerns.

This has weighed on the SA currency, as the country is a net importer of oil and therefore vulnerable ​to rising crude prices.

Gold, SA’s key export, was ​also down 0.6% at $4,321.26 per Ounce.

Investors are closely watching Wednesday’s ‌Federal ⁠Reserve decision for clues on the interest rate outlook and whether pressure on the rand could intensify.

“The more important signal on Wednesday won’t be the probability of ​a 25 basis ​points hike, ⁠it’ll be the guidance that follows, and whether Chairpesrson Kevin Warsh can convince markets ​the Fed is still serious about fighting inflation ​even ⁠as oil drags it higher,” said ETM Analytics.

On the Johannesburg Stock Exchange, the Top-40 index was last down 1.2% ⁠in ​early trade.

SA’s benchmark 2035 government ​bond was slightly weaker in early deals, as the yield rose 5 ​basis points to 8.785%.