South African Rand Weakens as US-Iran Peace Deal ‘Hangs’
The South African Rand weakened against the US dollar, Euro and sterling during early trading hours on Tuesday as the United States-Iran peace deal hung in the balance following fresh attacks.
The local currency appreciated sharply against major currencies yesterday as markets saw a signal of a potential deal to restore peace in the Middle East and ease the global energy crisis.
However, ZAR is pulling back on Tuesday, pressured by fresh reports of US military strikes on Iranian vessels in the Strait of Hormuz, now clouded prospects for an interim deal between Tehran and Washington.
In its morning brief, First National Bank (FNB) said the South African rand is trading at R16.32 to the dollar, R18.99 to the euro, and R21.98 to the pound, reflecting a surge in demand for safe-haven currencies.
In addition, the bullion traded higher on Monday amid a weaker dollar and increased hopes of a peace deal between the US and Iran, but is paring gains this morning as US strikes in the Strait of Hormuz tempered optimism over peace talks and kept inflation risks elevated.
Trading data cited revealed that gold is trading lower at $ 4,530/ounce amid dollar strength. Brent crude is trading at $95.26 per barrel, rebounding 2% after fresh US military strikes in southern Iran.
US forces are reported to have struck missile-launch sites and boats attempting to place mines, clouding the outlook for an interim deal to reopen the Strait of Hormuz. Stock Market Edges Higher on Telco, Banking Stocks Rally
