The USD/ZAR currency pair held near a fresh 1 1/2-week high of 16.2115 on Monday, as the conflict in the Middle East fueled global economic uncertainty and triggered a rush into safe-haven assets.
The US and Israel initiated massive strikes on Iran over the weekend, which led to the death of Supreme Leader Ayatollah Ali Khamenei.
Iran responded by targeting US assets across the region, including the United Arab Emirates, Bahrain, Saudi Arabia, Kuwait, Jordan, Qatar, Syria and Iraq.
Israel on Monday also launched attacks against Iran-backed Hezbollah militants in Lebanon.
“Although the U.S. is involved, and the (President Donald) Trump administration’s stance on tariffs continues to undermine the USD’s value, it remains a haven for investors seeking to shield themselves from the volatility that might follow this weekend’s events,” ETM Analytics wrote in a client note.
In terms of macro data, this week’s focus will likely set on US labor market data prints, including the ADP employment, weekly jobless claims and the key Non-Farm Payrolls reports.
Meanwhile, in South Africa, factory activity has contracted for 5th straight month in February, data by Absa showed. South Africa’s Manufacturing Purchasing Managers’ Index came in at 47.4 in February, down from 48.7 in January. The sharper contraction reflected weaker business activity and continued job losses.
The USD/ZAR currency pair was last up 0.69% on the day to trade at 16.0564.
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