Market News

JOHANNESBURG, May 4 (Reuters) – The South African rand weakened on Monday, pressured by a firmer U.S. dollar and a jump in oil prices, as escalating tensions between the United States and Iran weighed on global market sentiment.

At 1334 GMT, the rand traded at 16.6925 against the dollar, down 0.5% from its previous close.

The safe-haven U.S. dollar edged higher against a basket of currencies, while oil jumped over 3% to more than $110 a barrel.

Tehran said it had forced a U.S. warship to turn back from the Strait of Hormuz, although U.S. Central Command quickly denied a report by Iran’s semi-official Fars news agency that two missiles had hit the vessel.

The rand has been at the mercy of global market sentiment since the U.S. and Israel launched their war on Iran in late February and Tehran subsequently retaliated.

South African manufacturing sentiment improved in April as output and new sales orders rebounded after a weak first quarter.

Separately, data from South Africa’s auto association NAAMSA showed that new vehicle sales increased by 13% year-on-year in April, compared with a 17.3% increase recorded in March, as domestic demand continued to anchor the industry despite global uncertainty.

“The latest outcome reflects a market still benefiting from earlier cyclical support, even as external shocks continue to reshape the operating environment,” NAAMSA said in a statement.

On the Johannesburg Stock Exchange, the Top-40 index was down 0.2%.