Rand weaker as Saudi oil attacks spur global risk-off trade
The rand was weaker on Monday morning with risk sentiment under pressure after attacks on oil facilities in Saudi Arabia drove oil prices up.
The price of Brent crude jumped more than 9% on Monday morning after a drone attack on a Saudi Arabian facility at the weekend, wiping out more than half of the country’s oil supply, about 5% of global oil supply, Reuters reported.
“The drone attack … is causing havoc for certain emerging- markets this morning” due to the effect of higher oil prices on inflation, Standard Bank currency dealer Warrick Butler said.
“For countries like SA and Turkey, who are net importers, the negative impact is greater.”
At 9.55am, the rand had weakened 0.25% to R14.6622/$, 0.27% to R16.2394/€ while it was flat at R18.2696/£. The euro was little changed at $1.1075.
Gold was up 1.8% to $1,504.60 while platinum was flat at $955.36. Brent crude climbed 9.03% to $65.55 a barrel.
Source: businesslive.co.za