The South African rand dropped on Friday, weighed down by concerns about domestic economic growth and geopolitical tensions in the Middle East over attacks on Saudi Arabian oil facilities. At 1340 GMT, the rand was down 0.8% at 14.9450 versus the dollar, putting it on course for losses of more than 2% this week. The South African Reserve Bank left its main interest rate on hold at 6.5% on Thursday, disappointing some investors who had hoped that another rate cut could help stimulate the domestic economy.

Some analysts believe the window for the SARB to cut rates this year has now closed. The rand was also knocked by the threat of tensions between Saudi Arabia and Iran boiling over into hostilities, which boosted the safe-haven appeal of the US dollar.

Copyright Reuters, 2019