The South African (SA) Rand weakened in early trade on Tuesday, pressured by a firm United States (US) Dollar before the release ​of Central bank data that will shed light on ‌the economic outlook.

The Rand traded at 16.9075 against the Dollar, roughly down 0.5% from its previous close.

The currency had trimmed some recent losses ​on Monday after US President Donald Trump stepped back from plans ​to target Iran’s power plants and energy infrastructure, saying ⁠that Washington and Tehran held constructive talks.

His update lifted appetite ​for risk-sensitive currencies like the Rand.

However, sentiment turned cautious again after ​Iran denied holding negotiations with Washington, reviving investor concerns over the economic impact of a potential energy shock stemming from the conflict.

The ​SA Reserve Bank (SARB) will publish the country’s leading business cycle ​indicator for January, which collects data on vehicle sales, business confidence, money supply ‌and ⁠other factors.

On Thursday, investor attention will mainly be pinned on the central bank’s rate decision, when economists polled by Reuters expect the bank to keep its main lending rate steady at 6.75%.

The SARB’s ​Governor told Reuters ​earlier this ⁠month that the central bank will revise its risk scenarios at its next policy meeting, as the conflict ​in the Middle East continues to push oil ​prices higher – ⁠a trend expected to fuel inflation in net energy-importing SA.

The US Dollar was last up 0.2% against a basket of currencies, with oil ⁠prices ​rising due to supply fears.

SA’s ​benchmark 2035 government bond was slightly weaker in early deals, with the yield rising 1 ​basis point to 8.985%.

–Reuters–