The South Africa rand depreciated toward 17 per USD, the lowest since early December, reflecting the impact of lingering geopolitical tensions in the Middle East. Emerging market currencies like the rand are typically more sensitive to global uncertainty, and during times of heightened risk, investors tend to shift away from these assets toward safer havens. The rand’s exposure is compounded by South Africa’s reliance on imported oil, meaning that rising global energy prices directly increase domestic costs. The country lacks a significant strategic oil reserve and does not have the fiscal resources to provide subsidies or reverse tax increases, leaving the currency highly vulnerable if energy prices remain elevated. This led investors to scale back expectations of support from both monetary and fiscal policy. The South African Reserve Bank is anticipated to keep its policy rate unchanged on March 26 and maintain a steady stance in the near term.