South Africa: Rand Edges Down.

The South African rand weakened slightly toward 16.4 per USD, after touching an over one-month high of 16.3 per USD on April 17, as renewed US–Iran tensions prompted a rotation out of riskier assets into the dollar on safe-haven demand. The United States seized an Iranian cargo vessel it said attempted to breach its blockade, prompting retaliation threats from Tehran and raising doubts over the durability of the ceasefire. News of the renewed closure of the Strait of Hormuz pushed oil prices higher, reviving inflation concerns and bringing expectations of interest-rate hikes back into focus. Meanwhile, South African Reserve Bank Governor Lesetja Kganyago said the Iran war’s impact on oil prices has complicated the interest rate outlook amid increasing inflationary pressures. Without giving a clear signal on the policy direction, he sounded more hawkish, signaling that the possibility of rate hikes remains open and warning about potential second-round effects from supply-side shocks.