South African Rand Weakens Slightly

The South African rand weakened to around 16.5 per US dollar on Thursday, giving back some of its recent gains after reaching one-month highs. Deteriorating risk sentiment amid mounting geopolitical tensions pushed oil prices higher, weighing on the currency given South Africa’s reliance on fuel imports. At the same time, declining prices of key precious metals such as gold and PGMs removed another source of support. Meanwhile, investors continued to assess the government's medium-term budget review, which pointed to improved public finances and reaffirmed the government’s commitment to fiscal discipline. Finance Minister Enoch Godongwana also announced temporary fuel levy cuts to ease cost-of-living pressures.