South African Rand Momentum Eases on Middle East Clashes
South African Rand momentum eased against Western currencies as US-Iran clashes reverse market optimism. The United States and Iran exchanged fire on Thursday in the most serious test yet of their month-long ceasefire, but Iran said the situation returned to normal.
The rand lost some momentum, but has largely remained in tight ranges, trading at R16.44 against the dollar, R19.28 against the euro, and R22.39 against the pound.
The currency, along with emerging market peers, has been pressured by the lack of progress on the potential peace deal in the Middle East amid reports of renewed strikes.
Gold has climbed to around $4 715 per ounce after recent volatility, supported by renewed US-Iran tensions that dampened peace prospects and raised inflation concerns.
While the US signalled no intent to escalate, military activity persisted. Iran’s response to a proposed resolution is expected soon. Despite the rise, gold remains over 10% lower since the conflict began, amid inflation and interest rate concerns.
Brent crude touched a low of $95.94 per barrel in yesterday’s trading but has since surged above $101 per barrel this morning, rebounding amid renewed US-Iran tensions that threaten peace efforts.
Meanwhile, the IEA warned that the conflict is disrupting about 14 million barrels per day, with any supply recovery likely to be gradual. #South African Rand Momentum Eases on Middle East Clashes