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

By Reuters News

JOHANNESBURG, October 22 (Reuters) - The South African rand weakened in early trade on Thursday, pressured by rising oil prices as investors continued to assess the government's mid-year budget review, which included two months of temporary fuel tax relief.

  • At 0649 GMT the rand traded at 16.45 against the dollar , roughly down 0.5% from its previous close

  • Oil prices rose more than $1 a barrel on Thursday after more Houthi attacks in Saudi Arabia stoked concerns over a broader escalation of conflict and further disruptions to supplies from the Middle East

  • South Africa imports most of its fuel, leaving it vulnerable to swings in global energy prices. Its regulated petrol price rose about 5% in September before surging 12% in October.

  • The government will reintroduce temporary fuel levy cuts for two months from November, Finance Minister Enoch Godongwana said on Wednesday, in a 10 billion rand ($608 million) effort to ease cost-of-living pressures

  • South Africa's benchmark 2035 government bond strengthened in early deals, as the yield fell three basis points to 8.56%.

($1 = 16.4441 rand)

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