The rand continues to take a beating from global currencies, now in its second week. File picture: IOL
The rand continues to take a beating from global currencies, now in its second week.
In early trade, the rand was weaker as violence in the Middle East stoked risk aversion in global markets, according to Reuters.
At 12pm, the rand traded at R19.40 against the dollar.
The rand is trading at R20.42 to the euro.
The rand against the dollar was 0.6% weaker when compared to Friday at the close of the week.
The unexpected attack on Israel over the weekend by Hamas has caused global oil prices to surge by 5%.
According to the BBC, Brent crude rose more than $3 (R58) to $87.80 (R1 703,28) a barrel, while US prices also rose.
Reuters reported that US West Texas Intermediate crude was at $86.05 (R1671,41) a barrel, up $3.26 (R63,32), or 3.94%.
In late September, the price of Brent crude shot up to $94 a barrel (R1823,55).
As the price of oil increases, this in turn means that the price of petrol and diesel will go up.
It should be noted that Israel and Palestine are not oil producers. But the Middle Eastern region provides about a third of global oil needs.
The main reason for the sharp jump in crude prices is "due to the prospect of a wider conflagration that could spread to nearby major oil-producing nations such as Iran and Saudi Arabia," according to energy analyst Saul Kavonic in an interview with the BBC.
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