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[BUSINESS] · South Africa · 3 sources

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Part of situation: South African Rand economic volatility (3 clusters)

South African Rand hits four-week low amid rising oil prices

South African Rand emerging market currencies oil prices monetary policy US dollar

The South African Rand has weakened against major currencies, trading at a four-week low. The currency faced pressure from a stronger US dollar, rising global crude oil prices, and record domestic fuel hikes.

According to First National Bank (FNB), the rand was trading at approximately R16.58 to R16.70 against the US dollar. The local unit has experienced four consecutive weeks of losses. Geopolitical tensions in the Middle East have supported Brent crude prices, which reached $101.41 a barrel, further impacting risk-sensitive emerging market assets.

On the domestic front, the South African Reserve Bank’s Monetary Policy Review indicated that inflation risks remain tilted to the upside. The bank reiterated its commitment to anchoring inflation at its 3% target, suggesting that further policy tightening remains a possibility.

Entities

First National Bank · South African Rand · South African Reserve Bank · US Federal Reserve

Sources

South African Rand Softens Versus Crosses, Trades At 4-Week Low [dmarketforces.com]
The Rand Just Hit Its Weakest Level Since July – Here’s Why And What To Do About It [fspinvest.co.za]
Zuma rushed to hospital, and new BEE laws ruled invalid in South Africa [www.ghanamma.com]