South African assets sink on risk aversion after Israel's strike on Iran
JOHANNESBURG, June 13 (Reuters) - South Africa's rand and government bonds fell steeply in early trade on Friday, after Israeli military strikes on Iran drove investors toward safe havens.
At 0657 GMT, the risk-sensitive rand traded at 18.04 against the dollar , 1.6% weaker than Thursday's close.
The rand had been on a strong run for weeks, helped by local coalition partners resolving a budget dispute, talk of a lower inflation target and strong precious metal prices.
The escalation in hostilities in the Middle East - a major oil-producing region - adds a fresh layer of uncertainty for financial markets at a time of pressure on the global economy from U.S. President Donald Trump's erratic trade policies.
No major domestic data releases are due on Friday, but next week local consumer inflation (ZACPIY=ECI), opens new tab and retail sales (ZARET=ECI), opens new tab figures will be published.
The yield on South Africa's benchmark 2035 government bond was up 16.5 basis points to 10.25%.
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The Independent
41 minutes ago
- The Independent
Zelenskyy warns oil price surge could help Russia's war effort
A sharp rise in global oil prices following Israeli strikes on Iran will benefit Russia and bolster its military capabilities in the war in Ukraine, Ukrainian President Volodymyr Zelenskyy said Friday in comments that were under embargo until Saturday afternoon. Speaking to journalists in Kyiv, Zelenskyy said the surge in oil prices threatens Ukraine's position on the battlefield, especially because Western allies have not enforced effective price caps on Russian oil exports. 'The strikes led to a sharp increase in the price of oil, which is negative for us,' Zelenskyy said. 'The Russians are getting stronger due to greater income from oil exports.' Global oil prices rose as much as 7% after Israel and Iran exchanged attacks over the past 48 hours, raising concerns that further escalation in the region could disrupt oil exports from the Middle East. Zelenskyy to address concerns with the US Zelenskyy said he planned to raise the issue in an upcoming conversation with U.S. President Donald Trump. 'In the near future, I will be in contact with the American side, I think with the president, and we will raise this issue,' he said. Zelenskyy also expressed concern that U.S. military aid could be diverted away from Ukraine toward Israel during renewed tensions in the Middle East. 'We would like aid to Ukraine not to decrease because of this,' he said. 'Last time, this was a factor that slowed down aid to Ukraine.' Ukraine's military needs have been sidelined by the United States in favor of supporting Israel, Zelenskyy said, citing a shipment of 20,000 interceptor missiles, designed to counter Iran-made Shahed drones, that had been intended for Ukraine but were redirected to Israel. 'And for us it was a blow,' he said. 'When you face 300 to 400 drones a day, most are shot down or go off course, but some get through. 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The Ukrainian president also said the presence of foreign contingents in Ukraine would act as a security guarantee and allow Kyiv to make territorial compromises, which is the first time he has articulated a link between the reassurance force and concessions Kyiv is willing to make in negotiations with Russia. 'It is simply that their presence gives us the opportunity to compromise, when we can say that today our state does not have the strength to take our territories within the borders of 1991,' he said. But Europe and Ukraine are still waiting on strong signals from Trump. Without crushing U.S. sanctions against Russia, 'I will tell you frankly, it will be very difficult for us,' Zelenskyy said, adding that it would then fall on Europe to step up military aid to Ukraine. Body and prisoner returns follow Istanbul talks In other developments, Russia repatriated more bodies of fallen soldiers in line with an agreement reached during peace talks in Istanbul between Russian and Ukrainian delegations, Russian officials said Saturday, cited by Russian state media. The officials said Ukraine did not return any bodies to Russia on Saturday. Ukraine's Coordination Headquarters for the Treatment of Prisoners of War confirmed in a statement that Russia returned 1,200 bodies. The first round of the staggered exchanges took place Monday. The agreement to exchange prisoners of war and the bodies of fallen soldiers was the only tangible outcome of the talks in Istanbul on June 2. Russia says push continues Continuing a renewed battlefield push along eastern and northeastern parts of the more than 1,000-kilometer (over 600-mile) front line, the Russian Defense Ministry claimed Saturday that its troops captured another village in the Donetsk region, Zelenyi Kut. 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The Independent
an hour ago
- The Independent
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Telegraph
an hour ago
- Telegraph
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