The South African rand traded around 16.9 per USD, hovering near its weakest level since early December, as lingering geopolitical tensions in the Middle East weighed on sentiment. Emerging market currencies such as the rand are typically more sensitive to global uncertainty, and in periods of heightened risk, investors often rotate out of these assets into safer havens. The rand’s vulnerability is further amplified by South Africa’s dependence on imported oil, which means higher global energy prices translate directly into increased domestic costs. Compounding this, the country lacks a substantial strategic oil reserve and does not have the fiscal space to offer subsidies or roll back tax hikes, leaving the currency particularly exposed should elevated energy prices persist.