The South African rand slipped half a percent in early trade on Monday as the US-Iran standoff continued to drive oil prices higher, weighing on risk-sensitive currencies in oil-importing economies.
At 07:34 GMT the rand traded at 16.40 against the dollar, about 0.5% weaker than its previous close.
Oil prices climbed more than 3% on Monday with Brent crude futures last above $107 a barrel, after US President Donald Trump rejected a peace deal with Iran to resolve their conflict and reopen the Strait of Hormuz.
South Africa imports most of its fuel, leaving the economy vulnerable to swings in global oil prices since the Iran conflict began in late February.
South Africa’s benchmark 2035 government bond also weakened, as the yield rose 5.5 basis points to 8.855%.
