South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS
JOHANNESBURG, April 23 (Reuters) – The South African rand slipped in early trade on Thursday as a stand-off between Iran and the U.S. in the Middle East war and lack of progress in peace talks lifted oil prices back above $100 per barrel, weighing on investor sentiment.
- At 0650 GMT the rand traded at 16.53 against the dollar , about 0.4% weaker than its previous close.
- The dollar was broadly flat against a basket of currencies, while oil prices rose more than $1.
- South Africa is a net importer of energy, leaving it highly exposed to swings in global prices.
- Iran seized two ships in the Strait of Hormuz on Wednesday, tightening its grip on the strategic waterway after U.S. President Donald Trump extended a ceasefire with no sign of peace talks restarting.
- Trump maintained the U.S. Navy blockade of Iran’s trade by sea, and Iran’s parliament speaker and top negotiator Mohammad Baqer Qalibaf said a full ceasefire only made sense if it was lifted.
- South Africa’s benchmark 2035 government bond was weaker in early deals, with the yield up 6 basis points to 8.615%.
Reporting by Sfundo Parakozov. Editing by Mark Potter
