Rand Collapses as Reserve Bank Defies Hike Expectations

The South African rand plummeted to its weakest level in months after the Reserve Bank held interest rates steady at 7%, defying market expectations of a hike.

This unexpected decision triggered a sharp sell-off, sending the currency from R16.40 to above R16.86 per dollar by mid-morning on Friday.

The rand's weakness benefited the dollar, which rose in value due to higher US Treasury yields and inflation fears.

Brent oil prices surged above $100 a barrel after a Yemeni attack on Saudi oil tankers, adding to global trade tensions and inflationary pressures.