![\"\"](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/04\/rand2.jpg\")
South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS\/Siphiwe Sibeko<\/p>\nSouth African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS\/Siphiwe Sibeko<\/p>\n
JOHANNESBURG, April 21 (Reuters)\u00a0\u2013\u00a0The South African rand weakened on Tuesday as investors weighed geopolitical tensions linked to the Iran war, while investors digested\u00a0weaker\u00a0domestic business confidence data and\u00a0warnings\u00a0from the central bank about inflation risks linked to the conflict.<\/p>\n
At 1511 GMT, the rand traded at 16.4175 per dollar, about 0.3% down, after being flat in early trade.<\/p>\n
On the domestic front, business confidence fell to a five-month low in March, with the South African Chamber of Commerce and Industry\u2019s Business Confidence Index\u00a0slipping to 131.3 from 134.6 in February, weighed down by a weaker rand and slower trade.<\/p>\n
South Africa\u2019s central bank on Tuesday said the\u00a0Iran war\u00a0presented\u00a0material upside risks\u00a0to the country\u2019s inflation trajectory, with markets pricing in two interest rate hikes this year. The central bank said it still expected inflation to remain within the tolerance band of 1 percentage point above the 3% inflation target.<\/p>\n
The U.S. dollar\u00a0edged higher\u00a0on Tuesday, supported by hopes that a ceasefire could be reached in the conflict with Iran, tempering earlier risk appetite for emerging market currencies.<\/p>\n
Like other risk-sensitive currencies, the rand often takes cues from global drivers. The local currency has been at the mercy of global market sentiment since the start of the U.S. and Israeli war on Iran at the end of February.<\/p>\n
\u201cWith risk aversion moderating over April, the rand and other commodities currencies have seen some strength over the month, still weaker generally compared to before the start of the war, although those of advanced economies are typically stronger,\u201d said Annabel Bishop, chief economist at Investec.<\/p>\n
On the Johannesburg Stock Exchange, the Top-40 index\u00a0was down 1.47%.<\/p>\n
South Africa\u2019s benchmark 2035 government bond\u00a0has weakened, as the yield rose 9.5 basis points to 8.44%.<\/p>\n