South African rand slips as oil hits highest since May, fuel levy cuts loom

By Reuters News

JOHANNESBURG, Oct 22 (Reuters) - The South African rand slipped on Thursday as higher oil prices added pressure on the fuel-importing economy, while investors continued to assess the government's mid-year budget review, which included two months of temporary fuel levy relief.

  • At 1203 GMT, the rand traded at 16.5275 to the dollar , down about 1% from its previous close

  • Oil prices rose to their highest since May after more Houthi attacks in Saudi Arabia stoked concerns over an escalation of the Middle East conflict and further disruptions to oil supplies

  • 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

  • In its mid-year budget review on Wednesday, the government said it would reintroduce temporary fuel levy cuts for two months from November, in a 10 billion rand ($608 million) effort to ease cost-of-living pressures

  • On the Johannesburg Stock Exchange, the Top-40 index .JTOPI fell about 1.2%

  • South Africa's benchmark 2035 government bond weakened slightly, with the yield rising 1 basis point to 8.6%

($1 = 16.4441 rand)

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