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JOHANNESBURG - The South African rand was steady in early trade on Wednesday as investors assessed renewed Middle East tensions, weighing higher gold prices against a firmer dollar and rising oil prices.
At 0709 GMT, the rand traded at 16.32 against the dollar , little changed from its previous close.
Iran's Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait after Washington launched a wave of military strikes on Iran in response to attacks on tankers in the Strait of Hormuz.
The U.S. dollar held around its highest level in a week in Asian trade, while oil prices rose more than 2% after the U.S. military carried out airstrikes on Iran and reimposed sanctions on its crude sales, fuelling concerns that a fragile truce could be unravelling and disrupting Middle East oil supplies.
Gold, a key South African export, edged higher from a near one-week low as investors awaited the minutes of the Federal Reserve's June meeting, with renewed inflation concerns from fresh U.S.-Iran strikes capping gains in the precious metal.
"While the rand has been resilient in recent weeks, its near-term direction is likely to remain closely tied to developments in the Middle East and tonight's Fed minutes," said Andre Cilliers, currency strategist at TreasuryONE.
Like other risk-sensitive currencies, the rand is often driven by shifts in global market sentiment, particularly since the start of the U.S.-Iran conflict on February 28.
On the Johannesburg Stock Exchange, the Top-40 index was down about 1% in early trade.
South Africa's benchmark 2035 government bond was weaker in early deals, with the yield up 10 basis points to 8.33%.





















