FX.co ★ South African Rand Weakens

The South African rand weakened to around 16.5 per USD, retreating from recent one‑month highs, as risk-off sentiment resurfaced amid uncertainty surrounding a US–Iran truce. Ongoing tensions in the Middle East, including stepped-up Israeli military action in Lebanon, prompted Tehran to keep the Strait of Hormuz closed and hint at a possible withdrawal from talks with Washington. The developments triggered a renewed surge in oil prices and rekindled worries about energy-driven inflation, prompting investors to reassess the outlook for further interest rate hikes by major central banks. South African assets had rallied on April 8 following news of a two-day ceasefire, with the rand strengthening more than 2% and recouping part of the sharp losses suffered since the onset of the conflict.