The South African rand weakened against the dollar on Wednesday as the market assessed the impact of U.S. inflation data and Middle East conflict on global risk sentiment.
At 1443 GMT, the rand quoted at 16.3750 to the dollar, down about 0.5% from the previous session's close. The currency has been under pressure recently, with a cumulative drop of more than 3% last week.
The dollar index DXY rose about 0.2% after data showed that the U.S. February consumer price index rose 0.3% month-on-month, in line with market expectations.
Analysts pointed out that as a net energy importer, rising oil prices will exacerbate South Africa's external balance pressure, making the rand highly sensitive to geopolitical risks.
