South African Rand Dips Against U.S. Dollar, Euro, Pound
The South African rand (ZAR) depreciated on Monday, trading at R16.42 against the dollar, R19.25 against the euro, and R22.09 against the pound, according to a First National Bank (FNB) note.
The rand was sold off amid heightened tensions in the Middle East following President Donald Trump’s announcement of a US naval blockade of the Strait of Hormuz.
Emerging market currencies are under pressure following the collapse of US-Iran peace talks. FNB said in the note that Gold has slid nearly 2% this morning, erasing last week’s gains.
Analysts noted that markets reacted to President Trump’s blockade of the Strait of Hormuz, intensifying energy crisis fears.
The effective disruption of the Strait of Hormuz has also increased inflation risks, pressured rate cut expectations, and pushed gold over 10% lower since the conflict began.
The bullion is changing hands at $4 713 per ounce, according to FNB.
Brent crude surged over 6% to about $102.19 a barrel, rebounding from last week’s losses after the US announced restrictions on Iran-linked shipping through the Strait of Hormuz.
The disruption has lifted oil and gas prices and darkened the outlook for global growth, despite Saudi Arabia restoring pipeline capacity.
The JSE closed higher on Friday, with the All Share and Top 40 gaining 0.69% each. Financials led the advance with a 0.89% gain, Industrials climbed 0.81%, and Resources added 0.42%.
The market was driven by optimism ahead of US-Iran peace talks scheduled for the weekend in Islamabad. US inflation data released that day matched expectations, with core inflation coming in relatively tame, further supporting risk appetite. Oil Prices Ease 11% in 5-Day on Ceasefire Optimism
