South African rand pressured by rising oil prices as investors weigh budget review

Business Recorder reported that the South African rand lost about 0.5% against the dollar in early trade on Thursday, reaching 16.45 at 0649 GMT. Investors were also evaluating the government’s mid-year budget review, which provides temporary fuel-tax relief for two months.

Oil gained more than $1 a barrel after Houthi attacks in Saudi Arabia raised concerns about wider conflict and supply interruptions. South Africa imports most of its fuel, and regulated petrol prices climbed about 5% in September and 12% in October. Finance Minister Enoch Godongwana said the government would restore fuel-levy reductions for two months from November, costing 10 billion rand ($608 million); meanwhile, the 2035 bond yield slipped three basis points to 8.56%.