JOHANNESBURG, March 30 (Reuters) – The South African rand weakened on Monday, as the month-long war in the Middle East kept oil prices elevated, while markets are seeking clarity on talks between the U.S. and Iran.
- At 1413 GMT the rand traded at 17.1850 against the dollar , down 0.4% from Friday’s close.
- “For the time being, the risk remains firmly tilted towards further rand depreciation as the newsflow out of the Middle East remains particularly negative and market-disrupting,” said ETM Analytics in a research note.
- Analysts expect continued pressure on the rand as rising oil prices increase the risk of higher inflation in the net energy-importing country.
- Oil prices are heading for a record with Brent crude heading towards $115 a barrel after Yemen’s Houthis launched attacks on Israel over the weekend, widening the ongoing war.
- Data from the South African Reserve Bank showed that M3 money supply growth last month was 8.39%, up from 7.44% in January. Private sector credit growth for February was 10.50%, above January’s 8.83%.
- South Africa’s benchmark 2035 government bond was weaker, as the yield rose 8.5 basis points to 9.27%.
Reporting by Anathi Madubela, Sfundo Parakozov and Nilutpal Timsina; Editing by Alex Richardson and Jane Merriman
