Rand Weakens Against US Dollar, Steady Versus Euro, Pound
The South African rand weakened against the dollar to R16.80 but held steady against the euro at R19.63 and the pound at R22.70, First National Bank (FNB) said in its brief on Tuesday.
The local currency came under pressure as renewed Middle East tensions rattled emerging markets, with the US and Iran exchanging fire in the Persian Gulf on Monday, casting doubt over the four-week ceasefire.
Demand for the US dollar has lifted the dollar index above 100, though pressure is visible on the European single currency and the British pound. South Africa’s key driver of foreign earnings, Gold, has been under pressure due to a lingering geopolitical imbalance.
Gold is trading around $4 530 an ounce after a sharp drop, pressured by escalating Middle East tensions that lifted oil prices and inflation fears. Increased tensions drove bond yields higher and fuelled expectations of tighter monetary policy stances by central banks.
Brent crude is trading around $112.93 a barrel after a sharp rally, driven by escalating Middle East tensions. Clashes between the US and Iran in the Strait of Hormuz raised doubts about a ceasefire, disrupted key shipping routes, and heightened fears of prolonged supply risks, keeping energy markets cautious. Bitcoin Price Rises to $81k on Whale Accumulation, ETF Inflow
