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JOHANNESBURG - South Africa's risk-sensitive rand traded in a narrow range on Friday as investors followed Middle East developments after U.S. President Donald Trump's decision to postpone attacks on Iran's energy infrastructure.
At 0801 GMT, the rand traded at 17.11 against the dollar , little changed on the week and broadly in line with its emerging-market peers.
ETM Analytics said the currency is expected to remain on the defensive as the U.S.-Israeli war on Iran weighs on risk sentiment.
Trump said on Thursday he would postpone attacks on Iran's energy plants for 10 days at Tehran's request and that talks with Tehran were going "very well".
However, reports that the U.S. president was considering sending more troops added to concern about the war escalating into a ground conflict, with no certainty that the Strait of Hormuz could be reopened to shipping soon.
"The South African Reserve Bank will have a lot to consider in the coming months and will need to constantly walk a fine line between containing inflation expectations and not disrupting the country's Gross Domestic Product growth dynamic," said ETM Analytics.
The central bank kept its policy rate at 6.75% on Thursday, saying caution was needed.
On the Johannesburg Stock Exchange, the Top-40 index was down 0.7% in early trade.
South Africa's benchmark 2035 government bond also weakened, with the yield rising 13 basis points to 9.12%.



















