The local unit shaved off nearly a percent over the last 24 hours, trading at R17.92 to the Dollar. 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 fuelled a gold rally as investors move towards safe-havens. Some investors see gold as a more reliable investment in times of uncertainty.

Firmer commodity prices have also led to 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.

--SABC--