JOHANNESBURG - The South African rand fell sharply on Wednesday shrugging ​off better-than expected ⁠domestic inflation and retail sales data, dragged down by a ‌firmer dollar and a jump in oil prices that stoked inflation fears.

At ​1417 GMT, the rand traded at 16.8475 against the dollar , down ​1% from ​Tuesday's close.

Key South African exports gold and platinum fell 3.2% and 4.5% respectively, while oil prices rose more ⁠than 4% as the Middle East conflict showed no signs of de-escalating.

Analysts expect continued pressure on the rand amid concerns that rising oil prices will lift inflation in net energy-importer South ​Africa.

South ‌Africa's annual inflation ⁠eased in February, ⁠falling to the central bank's target of 3%, but analysts said the slowdown ​could be temporary as the ripple effects ‌of the U.S.-Israel war against Iran ⁠will show up in upcoming releases.

Economists polled by Reuters had expected annual inflation to come in at 3.1%, down from 3.5% in January.

South Africa's statistics agency also published retail sales showing a 4.2% year on year increase in January compared to the 2.5% predicted by Reuters economists.

On the Johannesburg Stock Exchange, the Top-40 index was last down 2.8%.

South ‌Africa's benchmark 2035 government bond also weakened sharply, with ⁠the yield rising 15 basis points to 8.945%.

The greenback was last up 0.3% against a basket of currencies as investors awaited the U.S. Federal Reserve's rate decision later in ​the day, ‌where policymakers are widely expected to keep rates steady.