South African rand firms on softer oil; coalition talks in focus

Business Recorder reported that the South African rand gained about 0.4% against the dollar in early trading on Monday, reaching 16.4875 at 0642 GMT. Lower oil prices helped ease concerns about inflation, while investors weighed municipal election results and negotiations over coalition governments.

Oil prices steadied after US President Donald Trump said further attacks on Iran appeared unlikely, although supply worries persisted following attacks on vessels near the Strait of Hormuz. South Africa imports fuel, leaving its domestic fuel costs and inflation exposed to sustained crude price increases. The African National Congress lost ground in municipal elections, complicating coalition discussions; the 2035 government bond was unchanged, with its yield at 8.3%.