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South African bank notes.
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The rand has weakened sharply following recent weeks gains as Israeli military strikes on Iran drove investors away from riskier assets.
The local unit shaved-off nearly a percent this morning trading at R17.92 this morning.
The rand’s recent strength has emerged as one of the key drivers of lower inflation in the past months.
The escalation of hostilities in the middle east has fueled gold rally as investors move towards safe havens.
Some investors see gold as more reliable investments in times of uncertainty.
Firmer commodity prices have also seen a surge in international oil prices.
Brent crude was up 4.6% this morning at $75, 77 a barrel.
Traders are concerned that a conflict between Iran and Israel could disrupt oil supplies coming from the energy-rich Middle East region. A combination of a weaker rand and higher oil prices could soon push up the price of fuel and food.
Israel strikes Iran’s nuclear facilities
