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

By Reuters News

JOHANNESBURG, Sept 28 (Reuters) - The South African rand slipped half a percent in early trade on Monday as the US-Iran standoff continued to drive oil prices higher, weighing on risk-sensitive currencies in oil-importing economies.

  • At 0734 GMT the rand traded at 16.40 against the dollar , about 0.5% weaker than its previous close.

  • Oil prices climbed more than 3% on Monday with Brent crude futures last above $107 a barrel, after US President Donald Trump rejected a peace deal with Iran to resolve their conflict and reopen the Strait of Hormuz.

  • South Africa imports most of its fuel, leaving the economy vulnerable to swings in global oil prices since the Iran conflict began in late February.

  • "Volatility in the rand could be elevated this week as the data calendar is jam-packed with data out of the US, culminating in the US non-farm payrolls on Friday," said Andre Cilliers at TreasuryONE.

  • On the Johannesburg Stock Exchange, the Top-40 index .JTOPI fell 1.7% in early trade.

  • Gold Fields GFIJ.J led losses, dropping about 13% after Australia's Northern Star Resources NST.AX said it had rejected an unsolicited A$38.7 billion ($27.1 billion) takeover approach.

  • South Africa's benchmark 2035 government bond also weakened, as the yield rose 5.5 basis points to 8.855%.

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