South Africa: Rand Hovers Around 1-Month Low.

The South African rand traded around 16.8 per USD, hovering near the lowest since early April, as the dollar remained supported by safe-haven demand on renewed hostilities in the Middle East that tested the fragile US-Iran ceasefire. The US and Iran launched fresh attacks in the Gulf as they sought control of the Strait of Hormuz through competing maritime blockades, following President Trump’s move to restore shipping through the strait and assist stranded vessels. In South Africa, the economic backdrop remains challenging, with inflationary pressures and sluggish growth guiding SARB policy. As a net importer of petroleum products, the country is highly exposed to global energy price swings, with inflation rising to 3.1% in March and expected to climb further on higher energy and food costs. The government said it will sharply raise pump prices for petrol, diesel, and other petroleum products from May 6, adding to expectations of a possible rate hike by the central bank.