South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration/File Photo
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 monthly rise, 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%.
On the Johannesburg Stock Exchange, the Top-40 index was up 0.5%.
South Africa’s benchmark 2035 government bond was weaker, as the yield rose 8.5 basis points to 9.27%.
Choose CNBC Africa as your preferred source on Google and never miss a moment from the most trusted name in business news.