The rand was weakened at the start of the week as the markets continued to react to the continued tensions in the Middle East.
The rand was trading at around R19.02 at 3:00pm on Monday. This was around 0.75% weaker than its previous close on Friday at the close of business.
The rand was trading at around R19.02 on Tuesday at 08:00am. The rand was trading at around R20.20 to the euro and around R23.65 to the pound.
Over the weekend Iran launched 300 drone strikes and missiles on Israel. This was in retaliation to an Israeli airstrike on Iran’s consulate in Syria on April 1.
Andre Cilliers, currency strategist at TreasuryONE said on Monday that tensions in the Middle East over the next few days are likely to remain the main focus and driver for currency moves and most likely keep the dollar on the front foot.
Izak Odendaal, an investment strategist at Old Mutual Wealth said on Monday that the recent increase in oil and other commodity prices is a concern, particularly given the weekend’s dramatic escalation in the Middle Eastern conflict.
Brent oil price on Monday was at around $90 (R1,716) per barrel.
On Tuesday Brent prices rose 0.8% to trade at $90.78 (R1,731.51) per barrel.
Investors will be looking at March inflation and February retail sales figures, which will be released later in the week. This will have an impact on the markets and the rand's strength against global currencies.
IOL BUSINESS