South African rand slips as US-Iran stalemate pushes oil prices higher

Business Recorder reported that the South African rand weakened about half a percent during Monday's opening hours, as the US-Iran standoff lifted oil prices. At 0734 GMT the currency was quoted at 16.40 to the dollar, around 0.5% below the previous day's closing level. The report said this pressure weighs on risk-sensitive currencies in economies that depend on imported oil.

Brent crude futures traded above $107 a barrel after oil rose more than 3% on Monday, following US President Donald Trump's decision to turn down a peace deal with Iran aimed at ending the conflict and reopening the Strait of Hormuz. South Africa imports most of its fuel, so its economy is exposed to global crude price fluctuations since the Iran conflict started in late February. According to Andre Cilliers of TreasuryONE, the rand could stay volatile this week because a crowded US data calendar culminates in non-farm payrolls on Friday.

On the Johannesburg Stock Exchange, the Top-40 index slid 1.7% in early trade. Gold Fields led the declines, falling about 13% after Australia's Northern Star Resources rejected an unsolicited takeover approach valued at A$38.7 billion ($27.1 billion). Separately, the yield on the 2035 government bond, a South African benchmark, climbed by 5.5 basis points, reaching 8.855%.