The Rand has weakened sharply following the escalation of the US-Israel conflict with Iran over the weekend, falling from 15.94 on Friday to around 16.14 per US dollar this morning. According to Bloomberg, the Rand fell the most among emerging market peers over the period. The local interest rate swap market has also experienced increased volatility amid the broader emerging market sell-off. The 2-year swap is trading at 6.34%, and the 3-year at 6.36%, while JIBAR stands at 6.62%. Oil prices jumped sharply, marking the largest single-day increase in four years, with Brent Crude at USD 78.44, up from USD 72.57 on Friday. Precious metals also advanced, with gold at USD 5,375.49 and platinum at USD 2,392.60.
The only notable economic announcement this week comes from the Eurozone tomorrow. CPI (YoY) is due, and economists expect no change, with inflation forecast to remain at 1.7%.
