31.03.202613:22:35UTC+00South African Rand Firms

The South African rand strengthened toward 17 per USD, rebounding from a four‑month low of 17.2 per USD reached on March 30, supported by a softer US dollar and rising precious metal prices. Nevertheless, the rand has weakened by nearly 7% against the greenback this month amid the conflict in the Middle East, as investors have shifted into safe-haven assets in response to heightened global uncertainty.

In its latest quarterly bulletin, the South African Reserve Bank warned that higher oil prices are likely to drive up domestic fuel costs, weighing on the economic outlook. The central bank left its benchmark policy rate unchanged at 6.75%, citing caution in light of persistent inflation and fragile GDP growth, and signaled that a prolonged conflict in the Persian Gulf could necessitate future rate hikes.

At the same time, Finance Minister Enoch Godongwana announced that the government will temporarily reduce a tax on fuel for one month to help cushion consumers from the impact of surging oil prices on domestic gasoline prices.